South Africa's rand and stocks slip, tracking global moves



JOHANNESBURG, July 30 (Reuters) - South Africa's rand and stocks slipped on Friday, tracking global market moves, but the rand was on course for a weekly gain of over 1% against the dollar thanks to a dovish tone from this week's U.S. Federal Reserve meeting.

At 1617 GMT, the rand ZAR= traded at 14.5975 against the dollar, roughly 0.3% weaker, as the greenback .DXY made similar gains against a basket of currencies.

Fed Chair Jerome Powell wrong-footed dollar bulls this week by saying that interest rate increases were "a ways away" and the job market still had "some ground to cover."

Riskier currencies such as the rand thrive on U.S. rates staying low because they benefit from the interest rate differential that increases their appeal for so-called carry trade, in which investors borrow in a low-yielding currency to invest in higher-yielding assets.

Upbeat trade ZATBAL=ECI and budget ZABUDM=ECI data on Friday had little impact on rand trading.

The Johannesburg Stock Exchange's All-share index .JALSH lost 0.85% at 68,971 points, while the Top-40 index .JTOPI closed 0.86% weaker at 62,852 points.

Local bullion miners Gold Fields GFIJ.J and Harmony Gold HARJ.J lost 1.35% and 3.39% respectively, as gold prices XAU= edged off a two-week high.


Reporting by Alexander Winning and Tanisha Heiberg; Editing by Richard Chang

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.