Johannesburg - The rand hit its strongest level against the dollar this year in Tuesday's early trading session as positive momentum continued for riskier emerging market currencies.
At 08:31 the rand hit R10.4645, its strongest level this year against the dollar and over half a percent stronger on the day, from Monday's New York close of R10.5295.
"It is emerging markets strengthening really, it is a continuation of the trend, we were struggling to get through 10.50 but we have come in this morning and broken it," said Jim Bryson, a rand trader from Rand Merchant Bank.
"Most emerging markets and other high-risk currencies are like the rand — pushing at the stronger-end of the recent range," Rand Merchant Bank added in a note.
The currency continued gains spurred by US jobs data that came in slightly below market expectations on Friday, which saw the rand break a three-month high.
Investors will be watching the release of the South African Chamber of Commerce and Industry (Saccci) March business confidence index to gauge economic sentiment. The indicator rose in February despite subdued economic activity.
Government bonds also firmed with yields for the benchmark 2026 paper falling 7 basis points to 8.31%, while the 2015 note was down 4 basis points to 6.695%.
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