AFRICATECHAPRIL 9, 2019 / 11:40 PM / UPDATED A DAY AGO UPDATE 1-South Africa's rand hits near 6-week best as dollar falls, stocks down
BNP Paribas South Africa senior economist Jeff Schultz said easing concerns about the U.S.-China trade tensions and fewer concerns over a global economic slowdown had played a part in current rand gains.
“All of that has prompted a slightly more optimistic, or risk-on appetite for global investors and that is obviously helping the emerging market currencies like the rand,” Schultz said.
With interest rates steady and inflation moderate, the currency offers one of the most attractive spreads to U.S. dollar and other low yield currencies, making it a target for carry traders.