Updates rand, bonds; add stocks
JOHANNESBURG, Oct 9 (Reuters) – South Africa’s rand firmed on Friday, as hopes for U.S. stimulus spending lifted sentiment globally, encouraging investors to buy riskier assets in emerging markets.
At 1500 GMT, the rand ZAR=D3 traded at 16.4350 against the U.S. dollar, 0.93% stronger than its previous close.
The expectations of stimulus in the world’s largest economy have provided a welcome boost for the rand by weakening the dollar .DXY and boosting appetite for risk-sensitive currencies.
After stalling talks with Democrats on a comprehensive aid package earlier this week, U.S. President Donald Trump on Thursday called for a “skinny” relief bill that would include elements such as direct payments and a bailout of the struggling airline sector.
“President Trump provided the catalyst for market activity again, as he affirmed his commitment to a stimulus package, which has provided support for emerging markets,” Nedbank analysts