* Rand holds firm as risk appetite holds
* Bonds weaken, yields rise in dull session
JOHANNESBURG, April 25 (Reuters) – The rand firmed as much
as 0.5 percent to a fresh three-week high against the dollar on
Wednesday and was on track for its second straight daily gain as
positive sentiment on world markets kept high-yield assets in
favour.
By 1608 GMT the rand was up 0.26 percent on the day
at 7.7680/dollar after earlier hitting 7.7510, the strongest it
has been against the greenback since April 4.
“The rand has mainly been tracking the core markets in the
past few days, however it is more notable that dollar/rand
managed to close below the longer holding 7.80-8.00 range,”
4Cast emerging market analyst Anisha Arora said.
“Focus now shifts to support around 7.75, given that this
level previously offered range tops this year and also marks the
200 day moving average,” she added.
Global shares jumped on Wednesday, lifted by
better-than-expected earnings from tech heavyweight Apple Inc
and signs of improved sentiment in troubled euro zone debt
markets.
The U.S. Federal Reserve repeated its promise to leave
interest rates on hold until at least late 2014 but offered few
clues into whether it might offer additional stimulus later this
year.
South African government bonds weakened slightly, nudging
yields higher as the market took a breather from last week’s
strong rally, traders said.
The yield on the benchmark three-year bond edged
up half a basis point to 6.495 percent and that for the
longer-dated 2026 paper added five basis points to
8.215 percent.
(Reporting by Stella Mapenzauswa)
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