JOHANNESBURG — The rand halted its recent slide against the United States dollar and bonds traded close to fresh one-month highs as the likelihood of deeper stimulus measures by the European Central Bank (ECB) boosted the local currency.
The rand firmed 0,31% by 0634GMT to 11,6725 per dollar, reversing losses of the previous session that saw it sink to 11,7085 overnight.
The benchmark government bond due in 2026 continued a recent strong run, with the yield shedding 10 basis points in early trade to 7,835%, its lowest since December 10. Analysts said bonds benefited from a sharp selloff in local equities as investors repositioned some of their debt.
Chances of further policy easing by the ECB increased after Germany’s December inflation slowed to its lowest in five years, pushing the euro lower and temporarily easing pressure on some riskier emerging market assets.