* Rand strengthens as dollar comes under pressure
* Stocks fall as Mr Price extends losses
(Updates figures, adds detail, fresh quotes,)
JOHANNESBURG, Sept 14 South Africa's rand was
firmer on Wednesday, recouping heavy losses in the previous
session, as declining expectations that the U.S. Federal Reserve
will raise rates next week put pressure on the dollar.
Stocks fell, led by the retail sector leader, Mr Price
, extending losses to a near seven-month low after
flagging lower half-year profits.
At 1503 GMT the rand was trading at 14.2900 per
dollar, up 0.73 percent on its New York close on Tuesday.
"The market is on edge. Everybody is looking to next week
for the Fed meeting and ... if the U.S. is going to hike (rates)
or not," Treasury One currency trader Andre Botha said.
Lower U.S. interest rate expectations boost investors'
appetite for emerging markets assets, which offer higher returns
but carry more risk.
The South African Reserve Bank is also due to announce its
interest rates decision next week.
On the stock market, the benchmark Top-40 index
fell 0.63 percent to 45,985 points, while the All-Share index
dropped 0.58 percent to 52,501 points.
Budget retailer Mr Price dropped 5.64 percent to 150.32 rand
after saying that half-year earnings were unlikely to exceed the
"International retailers have raised the bar. And how Mr
Price reacts will depend on its appetite to spend on
refurbishing stores to create a better shopping experience,"
said Siboniso Nxumalo, Co-Head of Old Mutual Investment Group's
Global Emerging Markets boutique.
Meanwhile shares in fashion retailer Truworths International
Limited fell 4.07 percent to 71.95 rand, while
Woolworths Holdings was down 4.2 percent at 80 rand and The
Foschini Group slid 3.83 percent to 137.19 rand.
Government bonds firmed, with the yield for the benchmark
instrument due in 2026 dropping 6 basis points to
(Reporting by Tanisha Heiberg and Olivia Kumwenda-Mtambo;
Editing by Greg Mahlich)