Johannesburg - South Africa's rand clawed back more ground against the dollar on Wednesday as the fading likelihood of a US rate increase next week boosted emerging markets.
This has seen investors pile back into emerging markets that offer higher returns but are carry more risk.
Government bonds were also stronger in early trade, while the blue-chip Top-40 futures index added 1.7 percent, an indication that the local bourse would open at least 759 points firmer at 07h00 GMT.
The rand traded at 13.5710 to the dollar by 06h44 GMT, a 1.1 percent gain over Tuesday's close, after earlier reaching a session high of 13.5500.
Government bonds were similarly firmer, and the yield for the benchmark instrument due in 2026 fell 6.5 basis points to 8.425 percent.
Local assets have benefited in the last two trading days from expectations that the US Federal Reserve could push back the start of policy tightening to December and not next week as earlier anticipated.
The rand would however need to close firmer than 13.6500/dollar on Wednesday to have a fair chance of pushing towards 13.4500 and 13.3000, Standard Bank trader Warrick Butler said.
“A lot will depend on global external events and those seem to have improved in terms of sentiment over the past couple of days,” Butler said.
REUTERS