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Rand Jumps as South Africa Unveils Plan to Tap Reserves for Debt
The rand strengthened and local bond yields dropped after South Africa said it will tap its gold and foreign-exchange reserves to reduce the scale of its public debt sales. The currency advanced as much as 0.8% to 18.7622 per dollar by 2:35 p.m. in Johannesburg, after trading flat before the announcement was made. The yield on local bonds due February 2035 dropped 10 basis points from closing levels to 11.57%, while the benchmark stock index was slightly down for the day. Bank stocks, however, were rallying with the gauge climbing as much as 1.1%. The decision to draw from the central bank will allow the government ... (full story)
