The rand was firmer against major global currencies on Tuesday afternoon, at its best level in two-weeks against the dollar, bolstered by signs of dovishness from the European Central Bank .
This boosted risk assets, although Draghi didn’t elaborate on when easing would take place. Looser monetary policy in Europe will increase interest in the rand, as investors will search for higher-yielding assets elsewhere, such as in SA government bonds. The bid on the benchmark R186 government bond had fallen 7.5 basis points to 8.28% — its best level in a year. Bond yields move inversely to bond prices.
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