Picture: ISTOCK
Picture: ISTOCK

The South African bond market had firmed further shortly before midday on Friday as the local market started to recover some of the losses it made on Thursday.

The rand lost nearly 3% on Thursday, weakening to R13.5799/$ on news that a scandal had hit Brazil.

It was reported that the Brazilian President Michel Temer authorised bribes in exchange for silence pertaining to a long-running corruption investigation.

The Brazilian real lost close to 8% to the dollar on these reports.

Global risk-off trade resulted in weakness across emerging-market currencies.

Rand Merchant Bank analyst Gordhan Kerr said panic buying of dollars had led to a weaker rand, with local bonds following suit.

"There were bearish indicators before things got out of hand, but the size of the move was very unexpected."

At 11.30am on Friday the bid on the R186 was at 8.695% from Thursday’s 8.76%.

The rand was at R13.2699 to the dollar from R13.4373.

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