Picture: REUTERS
Picture: REUTERS

The rand firmed significantly against major global currencies on Friday afternoon, extending gains made on Thursday, when global risk-assets staged a recovery.

The rand was volatile, but in mid-afternoon trade was at a two-week high to the greenback, tracking a firmer euro.

The dollar stumbled on news that top officials from President Donald Trump’s election campaign had been subpoenaed in a Russia probe, reported Dow Jones Newswires.

Analysts said the rand’s rally on Thursday could be partly attributed to adverse political headlines subsiding, and because events in Zimbabwe had also failed to spill over into violence.

Reuters, however, reported earlier that President Robert Mugabe would be fired on Sunday, and impeached on Tuesday, should he fail to agree to resign.

Despite the recent appetite for emerging-market currencies, further downside could be on the cards for the rand ahead of the rating reviews by S&P Global Ratings and Moody’s next week Friday, said FXTM analyst Lukman Otunuga.

At 3pm‚ the rand was at R13.9966 to the dollar from R14.1620, at R16.5046 to the euro from R16.6683, and at R18.4686 to the pound from R18.6844.

The euro was at $1.1792 from $1.1768.

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