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Rand gains as dollar retreats from 20-year peak

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South Africa’s rand recovered some losses to strengthen on Wednesday, as the dollar softened from a two-decade peak it hit earlier in the day.

At 17:55, the rand traded at 17.8875 against the dollar, 0.74stronger than its previous close. The rand had earlier in the morning hit a new 28-month low of 18.2225.

The dollar index, which measures the currency against a basket of major rivalswas last down about 0.84% to 113.180, softening from a 20-year high of 114.78.

As the dollar scaled fresh two-decade highs nearly every day this weekit kept most emerging market currencies on the back foot, including the rand, which is highly susceptible to global drivers such as the U.S. monetary policy.

Shares on the Johannesburg Stock Exchange fell, led by mining companies African Rainbow Minerals and Exxaro Resourceswhich closed down over 12.1% and 8% respectively.

Overall on the stock market, the Top-40 fell 0.34%, while the broader all-share index ended 0.36% lower.

The government’s benchmark 2030 bond was weaker, with the yield up 3 basis points to 10.810%.

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