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Johannesburg - The rand weakened and held above the R8 level
against the dollar early on Thursday, barely moving as investors waited on
local data and European developements later in the session before taking
positions.
Quarterly central bank data is due at 08:00 GMT where third
quarter national accounts are expected have deteriorated compared to the second
quarter as a bleak global economic outlook hits South Africa’s economy.
The current account is seen showing a wider shortfall of
3.65% of GDP from a drop of 3.3% in Q2.
Manufacturing numbers for October are due at 11:00 GMT and
expected to be weaker.
The rand was 0.3% weaker to the dollar at R8.0333, off a
R8.01 close in New York on Wednesday.
“We’re still in (Wednesday’s) range, the market is concerned
with what might happen with the ECB so it will tread water until we get these
news out of the way,” said Warrick Butler, a currency trader with Standard
Bank, adding a worse-than-anticipated current account could put pressure on the
rand.
Analysts see a break above R8.1500 signalling weaker levels
to R8.20 then R8.30 against the dollar.
Dealers say the data will provide insight on where the South
African economy is and where it’s likely headed, but a European Central Bank
decision afterwards will be the main driver for trade on Thursday.
Yields on government debt held steady at Wednesday’s closing levels of 6.70% on the four-year bond and 8.415% on the 15-year bond.
