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Johannesburg - The rand gained against a wobbly dollar on Tuesday after a US government shutdown, although the local currency might not sustain the gains if a PMI survey points to loss of confidence in the local manufacturing sector.
The rand traded at R9.9650/$ by 08:59, up 0.68% from its New York close.
Government bonds followed suit, pushing the yield for the 2026 benchmark paper 5.5 basis points lower to 7.88% and the 2015 issue down four basis points to 6.05%.
The dollar weakened against a basket of major currencies after the US failed to reach a compromise ahead of the deadline for a looming government shutdown in the world's biggest economy.
The rand has held its own despite a report on Tuesday showing South Africa's trade deficit unexpectedly widened to R19.05bn in August, the biggest gap in seven months.
"The rand's outperformance is extraordinary when you consider a terrible trade figure and weak Chinese figures that have hit commodities," said Rand Merchant Bank analyst John Cairns.
"As long as South Africa runs such a large current account deficit - which yesterday's trade data suggests will be longer than thought - it is still susceptible to a loss of confidence and a run."
The rand traded at R9.9650/$ by 08:59, up 0.68% from its New York close.
Government bonds followed suit, pushing the yield for the 2026 benchmark paper 5.5 basis points lower to 7.88% and the 2015 issue down four basis points to 6.05%.
The dollar weakened against a basket of major currencies after the US failed to reach a compromise ahead of the deadline for a looming government shutdown in the world's biggest economy.
The rand has held its own despite a report on Tuesday showing South Africa's trade deficit unexpectedly widened to R19.05bn in August, the biggest gap in seven months.
"The rand's outperformance is extraordinary when you consider a terrible trade figure and weak Chinese figures that have hit commodities," said Rand Merchant Bank analyst John Cairns.
"As long as South Africa runs such a large current account deficit - which yesterday's trade data suggests will be longer than thought - it is still susceptible to a loss of confidence and a run."
