South African rand strengthens on weak dollar; stocks jump

(Reuters) -South Africa's rand strengthened on Tuesday, joining a global risk rally amid weakness in U.S. Treasury yields and the dollar.

At 1532 GMT, the rand traded at 17.6225 against the dollar, 1.3% stronger than its previous close.

The dollar index, which measures the currency against six rivals, was last down more than 1% at 110.380.

The South African Reserve Bank (SARB) said on Tuesday it estimates that scheduled power cuts implemented by utility Eskom will shave off about 1.0 percentage points from 2022 economic growth.

Stocks on the Johannesburg Stock Exchange closed higher, mostly due to gains in the mining index.

The benchmark all-share index was up 3.25%, while the Top-40 index rose 3.44%.

The government's benchmark 2030 bond was stronger in afternoon deals, with the yield down 4 basis points to 10.640%.

(Reporting by Bhargav Acharya in Bengaluru and Anait Miridzhanian in Johannesburg; Editing by Raissa Kasolowsky)