Rand firms on hopes of China stimulus, bonds rally

The rand strengthened more than one percent against the dollar on Tuesday on hopes for a stimulus in China after its economy grew in the fourth quarter of 2015 at its weakest pace in nearly seven years.

By 10:24, the rand had firmed to 16.5960 per dollar , while government bonds also rallied.

There was a growing expectation that more monetary easing measures were imminent, improving sentiment in China's stock markets during the afternoon session.

"It's not terrible numbers really when you think about it. There's a little bit of optimism that maybe the negativity around the Chinese growth was a bit over done," said Bidvest Bank chief dealer Ion de Vleeschauwer.

"So we're seeing commodity-currencies rally across the board this morning."