JOHANNESBURG: South Africa’s rand rallied to its firmest in one week on Monday as sentiment toward emerging markets was lifted by positive signs from Chinese data, while stocks were mostly flat.
By 1600 GMT the rand had gained 1.9 percent to 14.6900 per dollar, outperforming fellow emerging currencies as it raced to a one-week high, just shy of the next key technical mark of 14.6000. “It’s effectively picking up from where it left off last week,” an analyst at Rand Merchant Bank Gordon Kerr said, adding that a run through recent technical resistance around 14.6400 could see the currency extend gains.
If the rand failed to hold on to the gains, it would likely turn to upcoming economic data for momentum, Kerr said. But with domestic retail and mining data only due later in the week, the rand took its cue from offshore developments, where hopes of further monetary stimulus by China after consumer and producer inflation there slowed boosted appetite for emerging assets.
