South Africa's rand rallies as dollar dips on Trump healthcare failure

Reuters
South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) - South Africa's rand extended recent gains to a new 20-month high on Monday with the dollar on the backfoot as concerns about the chances of U.S. fiscal stimulus mounted following President Donald Trump's failure to push through healthcare reform. * At 0650 GMT, the rand was 0.66 percent firmer at 12.3450per dollar, having closed at 12.4275 on Friday in New York. * Greenback slumped to a two-month low after Trump'shealthcare bill defeated raising doubts whether he will be ableto push through tax reforms and mega-spending packages. * South Africa's central bank due to keep rates unchanged onThursday according to a Reuters poll last week, offeringshort-term support for rand assets. * Stocks were set to open lower at 0700 GMT, with the JSEsecurities exchange's Top-40 futures index down 1.16 percent. * In fixed income, the yield for the benchmark governmentbond due in 2026 fell 8 basis points 8.285 percent. (Reporting by Mfuneko Toyana; Editing by Ed Stoddard)