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Johannesburg - The rand strengthened in early trade on Tuesday, bolstered as domestic firms brought back overseas earning ahead of the end of the financial quarter.
The rand was at R10.0020/$ at 08:27, 0.62% stronger than its New York close of R10.0675 overnight.
"The repatriation of foreign earnings is adding a bit of support but nothing has changed, we are not out of the woods yet," said Ion de Vleeschauwer, a trader at Bidvest Bank.
"The underlying sentiment is still bearish."
The end of June marks the end of either the second quarter or fiscal year for many companies with offshore operations such gold producer Gold Fields and transport firm Imperial Holdings.
Government bonds also firmed, recouping some of the losses suffered in the wake of the US Federal Reserve's plan to withdraw its stimulus programme.
The yield, which moves inversely to the price, on the benchmark bond due in 2026 fell 13.5 basis points to 8.170%, while the paper due in 2015 dropped 13 basis points to 6.355%.
Emerging markets have been heavily sold after Federal Reserve Chairman Ben Bernanke said last week the US central bank could soon start scaling down its monthly $85bn in asset purchases, which have boosted appetite for risky assets such the rand and local bonds.
The rand was at R10.0020/$ at 08:27, 0.62% stronger than its New York close of R10.0675 overnight.
"The repatriation of foreign earnings is adding a bit of support but nothing has changed, we are not out of the woods yet," said Ion de Vleeschauwer, a trader at Bidvest Bank.
"The underlying sentiment is still bearish."
The end of June marks the end of either the second quarter or fiscal year for many companies with offshore operations such gold producer Gold Fields and transport firm Imperial Holdings.
Government bonds also firmed, recouping some of the losses suffered in the wake of the US Federal Reserve's plan to withdraw its stimulus programme.
The yield, which moves inversely to the price, on the benchmark bond due in 2026 fell 13.5 basis points to 8.170%, while the paper due in 2015 dropped 13 basis points to 6.355%.
Emerging markets have been heavily sold after Federal Reserve Chairman Ben Bernanke said last week the US central bank could soon start scaling down its monthly $85bn in asset purchases, which have boosted appetite for risky assets such the rand and local bonds.
