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Rand steady on rising risk appetite

Johannesburg - The rand steadied against the dollar early on Thursday supported by investor appetite for riskier assets that was nonethless tempered by the possibility that the US Federal Reserve may raise interest rates.

At 08:47, the rand traded at R15.6645/$, not far off its New York close of R15.6725 on Wednesday.

Analysts said this week that risk appetite in emerging markets was buoyed by a debt relief deal being reached for Greece and a new, seemingly more business friendly cabinet in Turkey.

"Risk appetite remains strong while dollar gains, which were holding back the rand, have faded," Rand Merchant Bank currency analyst John Cairns said in a note.

"The big market story remains the Fed. Yellen's speech tomorrow is the next big event, although US data offers some risk in-between."

Federal Reserve chair Janet Yellen is due to speak on Friday, and could reinforce expectations that the central bank might raise interest rates as early as next month, or in July. Hawkish minutes from the Fed's April policy meeting and comments by several policymakers hinted that a hike could be forthcoming.

The prospects of higher US interest rates undermine the attraction of riskier but high-yielding emerging markets assets.

Locally, focus was on April's producer inflation data due out at 11:30.

On the stock market, the Top 40 index was up 0.65%, while the broader All-share rose 0.64% in early trade.

In fixed income, the yield for the benchmark instrument due in 2026 was flat at 9.43%.

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Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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