South Africa’s Rand Snaps Two-day Decline In Thin Trade Ahead Of Holidays

SOUTH Africa’s rand firmed on Wednesday, ending a two-day losing streak, as risk demand trickled back after being battered by worries about a highly infectious new variant of coronavirus in the country and elsewhere.

At 1500 GMT, the rand ZAR=D3 traded at 14.5725 against the U.S. dollar, 0.73% higher than its previous close.

The rand had been battered this week as countries around the world closed their borders to both Britain and South Africa following their identification of the fast-spreading variant of the coronavirus.

But on Wednesday the dollar declined, as investors drawn to the safe-haven currency pulled back. A combination of slack consumer confidence indicators showed the world’s number one economy was still feeling the impact of COVID-19.

This saw high-risk, high-yielding currencies like the rand and the Turkish lira, back in favour.

“Flush global liquidity conditions courtesy of the central banks, and SA’s rise up the carry attractiveness