South Africa's rand gains as dollar falls back

The currency had dipped on Monday


JOHANNESBURG - South Africa's rand rose on Tuesday, gaining back some ground lost a day earlier thanks to a softer dollar.

At 0650 GMT, the rand ZAR= traded at 14.5900 against the dollar, 0.68% stronger than its previous close.

The currency had dipped on Monday, dented by third quarter economic data from China showing the slowest pace of growth in a year, which prompted investors to sell riskier assets like the rand.

However weak manufacturing data from another global super power, the United States, knocked the dollar on Tuesday, along with a recovery in risk sentiment, helping to lift the rand back up.

"Following a tough first session to the new week, the ZAR has recovered in overnight trade as the USD fell to the bottom of its recent range amid improving risk appetite," ETM Analytics said in a note.

Stocks opened higher, with the Johannesburg Stock Exchange's Top-40 Index .JTOPI rising 0.23% in early trade.

Government bonds strengthened, with the yield on the instrument due in 2030 ZAR2030= dropping 6.5 basis points to 9.415%.

(Reporting by Emma Rumney; Editing by Kirsten Donovan)

More From Currencies