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Johannesburg - The rand extended its gains against the dollar on Friday to hit a five-month high, lifted by a weaker greenback and a court ruling against scandal-beset President Jacob Zuma, while stocks fell in line with global counterparts.
At 15:00 GMT the rand was 0.66% firmer at 14.1900 per dollar, the unit's firmest level since November 25.
The rand rose together with fellow emerging market currencies after inflation from the United States disappointed, along with a string of other data releases this week, raising appetite for emerging markets.
"It's all about global sentiment," Nedbank economist Isaac Matshego said. "Generally, the statement that the Fed would be very cautious moving forward was supportive of emerging currencies in particular."
Locally, a court decision to review 783 corruption charges against President Jacob Zuma saw the rand gain nearly one percent before slipping back.
It followed a constitutional court ruling against Zuma that found he was liable to pay for state-funded upgrades to his private residence. Analysts said that helped restore investor confidence in the rule of law in Africa's most advanced economy.
The currency has been trading at its firmest levels since late last year, when Zuma alarmed markets by sacked finance minister Nhlanhla Nene and replacing him with ally David van Rooyen, who was in turn replaced days later by the respected Pravin Gordhan.
Data from the revenue service showing the March trade balance had swung unexpectedly to a R2.92bn surplus also offered the rand support and it made a run at the psychologically significant mark of 14 to the dollar.
Government bonds also strengthened, with the yield for the benchmark instrument due in 2026 falling 7 basis points to 8.975%.
Stocks fell in line with global peers as earnings failed to inspire higher valuations, led by Coronation Fund Managers, which sank 5.7% after it flagged expectations of lower H1 earnings.
The benchmark Top-40 index closed 0.69% lower at 46 471 while the broader All-Share index closed 0.5% lower at 52 957.32.
