Rand firms as easing Brexit risk buoys emerging markets

Johannesburg - The rand strengthened as much as 1.3% against the dollar on Monday, buoyed along with other emerging market currencies by lessening fears of Britain voting to leave the European Union (EU).

It rallied to R14.9900/$, its strongest for a week, and was up 1.2% at R15.0100/$ by 08:44, compared with Friday's close of R15.1950/$, as investors' appetite for risk improved.

The rand took its cue from Asian markets which gained across the board as opinion polls showed the campaign to keep Britain in the EU had recovered momentum. The referendum is on Thursday.

"EM currencies are strengthening this morning on the back of the new Brexit polls," Standard Bank said in a note.

"The rand has strengthened to trade around 15.00, looking set to break below this level today."

Government bonds ticked higher, and the yield on the 2026 benchmark dipped half a basis point to 9.06%.

South African stocks also looked set to open firmer at 09:00, with the JSE's Top 40 futures index adding 1.3%.