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(Updates prices)
JOHANNESBURG, July 7 (Reuters) - South Africa’s rand steadied against the dollar in afternoon trade on Wednesday, with market attention pinned on the release of minutes from the U.S. Federal Reserve later in the day.
At 1500 GMT, the rand traded at 14.3750 against the dollar, close to its previous close of 14.3775.
Investors will scrutinise the Fed minutes, due at 1800 GMT, for further clues about when U.S. interest rates might rise. Any sign they will rise soon tends to hurt emerging market currencies like the rand.
South Africa’s net foreign reserves dipped to $51.368 billion in June, central bank data showed on Wednesday, but that did little to sway the local currency.
Elsewhere, research firm NKC African Economics said it had raised its 2021 economic growth forecast for South Africa to 4.3% on the back of increased activity and mobility in recent months.
“The rise in global demand and bounce-back in commodity price levels will support South Africa’s industrial sector growth. And excess savings among middle- and high-income groups have and will support consumer spending in the coming months,” NKC said in a note.
It cautioned that the economic recovery from the COVID-19 pandemic would be a lengthy one, however, following a steep contraction of 7% last year.
On the Johannesburg Stock Exchange (JSE), stocks bounced back from the previous session low, boosted by resources as gold and palladium prices gained.
“We’re taking a bit of guidance from global markets, all time highs on the S&P 500, all time highs on the Nasdaq and then dragging the likes of the JSE upwards,” Sanlam Private Wealth Portfolio Manager Nick Kunze said.
The mining index climbed 2.19%, led by Anglo American Platinum up 5.02% and followed by Northam Platinum up 4.46%. Sibanye Stillwater rose by 2.98%.
The main Johannesburg all-share index climbed 1.45% while the Top-40 index rose 1.59%.
Retailer Steinhoff, battling to move on from a huge accounting fraud, leapt 21.38% following a two day sell-off.
On Wednesday it said Dublin-headquartered Hamilton, which sued Steinhoff on behalf of large South African asset managers, had withdrawn its appeal with a Dutch court, related to the retailer’s proposed settlement plan which was thrown into doubt last Friday by another court.
Government bonds firmed, with the yield on the 2030 instrument dipping 2 basis points to 8.9%. (Reporting by Alexander Winning and Nqobile Dludla Editing by Mark Potter)
