(Updates levels, adds quotes)
JOHANNESBURG, June 13 South Africa's rand inched
higher on Tuesday, adding to the previous session's gains, with
political and economic uncertainty in Britain and the United
States encouraging investors to search for higher yields
Stocks trod water as falls in gold shares and Brait SE
curbed further gains.
At 1528 GMT, the rand traded 0.35 percent firmer at
12.7750 per dollar compared to close of 12.8200 overnight in New
"Despite a backdrop of decline and downgrades from all of
the ratings agencies, the rand continues to trade resiliently,
technically the current levels would suggest the potential for a
move toward the 12.5000 level, although local fundamentals do
not appear to support that scenario," Nedbank analysts wrote in
The rand has gained around 1.5 percent since Moody's
downgraded the country's credit by one notch on Friday with a
negative outlook, which still left it as the only major agency
to rate South Africa as investment grade.
Globally, traders eyed the start of a two-day U.S. Federal
Reserve meeting. With the bank widely expected to raise interest
rates, investors' focus will be on any fresh hints on the pace
of hikes in the months to come, and its assessment of the
economy and outlook on inflation.
In Britain, investors were still cautious after the shock
outcome of last week's election, in which voters denied any
party a parliamentary majority.
Government bonds weakened, with the yield for the benchmark
instrument due in 2026 adding 3.5 basis points to 8.44
On the bourse, the benchmark Top-40 index rising
0.21 percent to 45,264, while the broader All-share index
ticked up 0.12 percent at 51,625.
The biggest faller on the bourse, Brait SE,
reported a 43 percent fall in full-year net asset value (NAV),
weighed down by unfavourable currency movements and a weak
showing at New Look, its British no-frills clothing
Brait shares fell 4.55 percent to 62.51 rand.
Among the gold miners, AngloGold Ashanti fell 3.75
percent to 145.80 rand, Harmony dropped 2.17 percent to
23.85 rand and Goldfield fell 1.79 percent to 46.201
(Reporting by Mfuneko Toyana and Olwethu Boso; Editing by Kevin