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Johannesburg - The rand held steady against the dollar on
Tuesday as investors were reluctant to take decisive positions two days ahead
of a local interest rate meeting.
The South African Reserve Bank kicks off its three-day monetary policy committee (MPC) meeting on Tuesday while the Treasury auctions
R2.1bn of its 2017, 2020 and 2041 bonds at 09:00 GMT.
The rand was trading at R7.5875 to the dollar at 06:20 GMT,
little changed from Monday’s New York close of R7.582.
“As we drift towards the MPC this week, it is most probably
likely to stay in these ranges,” said Jim Bryson, a trader at Rand Merchant
Bank.
A poll of 24 economists surveyed by Reuters said the Reserve
Bank would keep its repo rate at historical lows of 5.5%.
Yields on the two main benchmark government bonds were up
just 1.5 basis points, with the 2015 yield at 6.765% and that on the 2026 note
at 8.39%.
On the bourse, stocks looked set for a weaker start, with the June futures contract of the JSE’s blue-chip Top 40 - (Tradeable) [JSE:J200] index down 0.08% before the 07:00 GMT start of trade.
