The rand rose to its strongest level in more than three years, following a broad market rally after US President Donald Trump ruled out using force to take Greenland.
The currency strengthened to R16.19 per dollar on Thursday morning, outperforming most emerging-market peers. The yield on South Africa’s benchmark government bond fell 11 basis points to 8.32%.
“Risk sentiment has improved,” said Lee Hardman, a strategist at MUFG.
Record-high gold prices, driven by heightened geopolitical risks, also supported the rand and lifted South African assets.
Meanwhile, economic data showed that South African inflation remains under control, which should give the central bank room to cut interest rates.
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