JOHANNESBURG (Reuters) -The South African rand extended its gains on Thursday, a day after the U.S. Federal Reserve opted to keep interest rates unchanged.
At 1530 GMT, the rand traded at 18.3000 against the dollar, 0.25% stronger than its previous close. On Wednesday, the rand gained over 1% to its strongest level in five weeks.
“We have now seen ten consecutive days of gains, a run only bettered twice in history – in 1994 and 2006,” said Rand Merchant Bank analysts in a research note, adding that this recovery was the most rapid in this cycle.
The dollar index last traded at 102.29, about 0.62% weaker than its closing level on Wednesday.
Like most emerging market currencies, the risk-sensitive rand is susceptible to moves in global drivers such as U.S. monetary policy and the dollar in the absence of local catalysts.
Shares on the Johannesburg Stock Exchange closed higher, with both the broader all-share index and blue-chip Top-40 index ending up about 0.6%.
South African financial markets are closed on Friday on account of Youth Day.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 3.5 basis points at 10.740%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Anait Miridzhanian, Emelia Sithole-Matarise, Alexandra Hudson)
