* Rand boosted by higher risk appetite
* China GDP data, to influence commodity currencies
JOHANNESBURG, April 12 (Reuters) – South Africa’s rand
rallied as much as 1.5 percent against the dollar on Thursday,
in line with other high-yield currencies, on expectations of
further quantitative easing for the U.S. unit.
Government bonds followed suit, pushing the yield on
three-year paper 4.5 basis points lower to 6.7
percent. The yield for the 15-year issue was down
three basis points at 8.455 percent at the close.
The rand touched a session high of 7.8825 to the
dollar before retreating to 7.9016 by 1625 GMT, still up 1.29
percent compared with Wednesday’s close at 8.0050.
The rand was boosted on Thursday by revived appetite for
riskier assets and emerging markets along with an extensive
recovery in the euro, said forex trader William Van Rijn, who
runs the spot desk at Nedbank.
“A breach of the previous tops over the past few days at
1.3150 (for euro/dollar) has triggered a few stop losses in that
currency pair and there was some neutralising of long dollar
positions against the rand as well,” Van Rijn said.
“A breach of the short-term support in the rand between 7.90
and 7.93 has assisted the local currency,” he added.
The rand was the top performer among 20 emerging market
currencies monitored by Reuters, ahead of the Hungarian forint
and Poland’s zloty.
Markets are keeping an eye on the likely extent in coming
months of China’s demand for commodity exports, which tends to
influence the rand given South Africa’s position as a major
resource producer.
“Focus is on China’s GDP print tomorrow and disappointment
(from the data) may limit the dollar/rand pullback,” said Anisha
Arora, an emerging markets analyst at 4Cast.
(Reporting by Stella Mapenzauswa; Editing by Michael Roddy)
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