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Rand down on foreign reserves dip

Johannesburg - The rand slipped against the dollar on Tuesday as SA Reserve Bank (Sarb) data showed foreign reserves dipped in September and the US currency rebounded after investors cashed in profits in the previous session after a run of recent gains.

The local unit eased to R11.2235 per dollar by 08:14, 0.04% off its New York close of R11.2185 as the index measuring the greenback against major currencies reversed Monday's drop.

On Monday, the rand gained almost 1% as investors welcomed the appointment of a new reserve bank governor, Lesetja Kganyago.

READ: Markets welcome new sarb governor

Data from Sarb showed that net gold and foreign exchange reserves dipped to $43.329bn in September from $44.24bn in August.

Government bonds firmed in morning trade, with the yield on the benchmark paper due in 2026 down 1 basis point to 8.265%, reflecting a view among analysts that Kganyago will be tough on inflation.

READ: Kganyago: Sarb's main job to protect the rand

The South African Chamber of Commerce and Industry releases its September business confidence index at 11:30. The index recovered from a 15-year low in August after the end of strikes that battered the economy in the first half of the year.

However, economic indicators have continued to show subdued consumer and manufacturing activity, with a Reuters poll of economists expecting mining and manufacturing data out on Thursday to reveal a decline in production.

Pressure on the rand has also been applied by a strong dollar and signals from the US Fed that it will raise interest rates in mid-2015.

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Rand - Dollar
19.01
-0.5%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.52
-0.3%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.40
+0.7%
Silver
24.58
-0.3%
Brent Crude
86.09
-0.2%
Top 40
68,189
+0.8%
All Share
74,373
+0.6%
Resource 10
57,035
+2.5%
Industrial 25
103,662
+0.4%
Financial 15
16,492
-0.2%
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