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South African rand strengthens as dollar dips; stocks rise

South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed close to the American dollar notes in this photo illustration in Johannesburg, file. REUTERS/Siphiwe Sibeko

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Sept 9 (Reuters) – South Africa’s rand strengthened on Friday following the dollar fell before a U.S. inflation report which could determine how big is the Federal Reserve’s rate hike as of this month’s policy meeting.

At 1550 GMT, the rand traded at 17.2700 contrary to the dollar, 1.47% more powerful than its previous close.

The dollar index , which measures the currency against six rivals, was down around 0.5% at 108.950. read more

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On the Johannesburg STOCK MARKET (JSE), the Top-40 (.JTOPI) index rose 2.46%, as the broader all-share (.JALSH) index was up 2.15%, driven mostly by mining (.JRESI) and banking (.JBANK) shares.

Stronger commodities prices gave a lift to assets in the resource-rich country, Gerhard Parkin, portfolio manager for BP Bernstein, told Reuters.

“That’s only a relief rally in the shares which were oversold,” Parkin said.

He also cited Chinese inflation data that came below consensus and left room for further central bank policy easing. read more

Among gainers, miners Anglo American Platinum (AMSJ.J), Anglo American PLC , Kumba Iron Ore (KIOJ.J) and BHP Group Ltd were up around 5-6%. Overall, the mining index (.JMINI) closed 2.68% higher.

The government’s benchmark 2030 bond rose, with the yield down 7.5 basis points to 10.305%.

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Reporting by Bhargav Acharya in Bengaluru, Anait Miridzhanian and Nqobile Dludla in JohannesburgEditing by Raissa Kasolowsky and Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles.

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