Rand recovers after Gordhan calms markets

Johannesburg - Johannesburg - The rand recovered below 15 against the dollar, extending the previous session's rally after appointment of a widely respected finance minister, Pravin Gordhan.

By 10:32, the rand had inched up 0.73% to R14.97/$, a level last seen before Nhlanhla Nene was fired as finance minister last Wednesday.

Ratings agency Fitch said on Monday that the appointment of Gordhan - the third finance minister in a week - had not been enough to enhance confidence in the government's management of an economy whose investment grade status is already at risk.

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"Although the dust is still to settle fully, President Zuma's climb down on the finance minister appointment is a welcome development, with positive implications, though much damage has been done to already depressed confidence," said Barclays Africa currency strategist Mike Keenan.

Government bonds recovered in early trade, with the benchmark paper due in 2026 down 13.5 basis points at 9.865%.

The Johannesburg broader All-share index opened 0.2% higher at 48 177 points.

The volatile Banking index rose 1.83%, having fallen by more than 15% last week after a sharp sell-off.

Investors are also cautious ahead of a widely anticipated US interest rate increase by the Federal Reserve on Wednesday.

The rand has fallen more than 30% so far this year as investors dump risky assets in anticipation of a US interest rate hike amid a commodity rout.