He added that marketers could buy dollars from any source, rather than just the Central Bank of Nigeria, CBN, or oil companies. However, South Africa’s rand reversed earlier losses against the dollar yesterday, helped mainly by the greenback’s weakness in the wake of data that undermined the case for a US rate hike.
Having earlier hit a session low of 14.5350/dollar, the rand clawed its way back to 14.3940, up 0.4 per cent from Monday’s New York close at 14.4510. The rand’s gains reflected general dollar weakness after weaker-than expected US economic data reinforced views that the Federal Reserve would take a dovish stance in a policy statement on Wednesday.
“Everything is stronger versus the dollar this afternoon,” IGM analyst Christopher Shiells said. “The dollar had strengthened before all of this on expectations the Fed may be a bit more hawkish, but this was perhaps overplayed and the emerging market rally is back on.”
Tuesday trade was affected by thin liquidity ahead of a national holiday which would see South African financial markets closed on Wednesday, Johannesburg- based forex dealers said. Government bonds also ticked higher, with the 2026 benchmark dipping 1 basis point to end the day at 9.115 per cent.
After a volatile session on the bourse, the benchmark Top-40 index closed 0.24 per cent higher at 46,695.33 points while the broader All-Share index gained 0.15 per cent to 53,062.95. Supermarket operator Pick n Pay was up 2.03 per cent at 70.90 rand after it reported a 26.4 per cent rise in headline earnings per share and said it planned to expand into Nigeria.