JOHANNESBURG (Reuters) – South Africa’s rand inched up on Wednesday after dropping to two-months lows the day before, as some risk demand returned amid concern over the global economy.

At 0650 GMT the rand was up 0.4% to 17.3000 per dollar, after falling to 17.5350 in the previous session, its worst since early June.

“The rand traded on the back foot yesterday, despite local sellers of USD. This supply was easily absorbed by offshore-driven demand, with the rand an apparent proxy for all emerging-market currencies,” analysts at Nedbank said in a note.

“This morning, the rand has recovered from its worst levels. Globally, headlines are dominated by the news that the trade agreement between China and the U.S. would be evaluated later in the month.”

A delay in agreement over the latest coronavirus relief package in the United States has also slowed demand for the dollar, leading to some recovery in emerging-market assets.

Gold climbed to a record high on Wednesday, extending a run above $2,000. Demand for the safe haven reflected waning hopes for a quick recovery in the global economy.[GOL/]

Bonds gained, with the yield on the benchmark 2026 bond down 1.5 basis points to 9.320%.