Cape Town - The rand gained to its strongest level against the dollar in five months after South Africa unexpectedly posted a trade surplus in March for the first time this year.
The currency gained 0.9% to R14.1611/$ by 2:46pm, heading for the strongest level since November 24 and the best performance out of 31 major and emerging-market currencies monitored by Bloomberg. The rand has advanced 9.2% this year, partially reversing a 25% loss in 2015.
Yields on benchmark government bonds due December 2026 dropped 7 basis points to 8.97%.
The country posted a trade surplus of R2.9bbn in March, compared with a deficit of R1.1bn the previous month, the revenue agency said. The median estimate of economists in a Bloomberg survey was for a deficit of R1.9bn.
Earlier, the rand strengthened after the high court set aside a 2009 decision to drop corruption charges against Jacob Zuma, one month before he became president. The ruling may mean Zuma has to face more than 700 charges.