Data provided by iNet BFA
Loading...
See More

Rand expected to weaken further

Dec 03 2012 09:15 Reuters

(Supplied)

Related Articles

Rand slides after poor trade data

Rand firms near two-week high

Rand off intraday highs on local data

Risk appetite spurs rand recovery

Rand firmer due to risk-on trade

Rand softens, bonds rise

 

Johannesburg - The rand could struggle to regain its strength in the days ahead as the country's weak fundamentals offset an anticipated end-of-year boost to the currency.

The rand was at R8.900 to the dollar at 06:48 GMT on Monday, barely changed from Friday's New York close.

The currency looked set to trade in a range of between R8.75 and R8.95 this week but there was potential for further weakness if the R8.95/8.96 level is breached, one trader said.

"We are looking for more short-term weakness," he said.

"The fundamental backdrop is still pretty weak and that's reflected in the numbers we saw last week."

After hitting a two-week high last Thursday, the rand was dragged lower the following day when data showed South Africa's trade deficit had widened more than expected in October.

The rand often strengthens towards year-end due to exporter demand for the currency but the poor backdrop and risks associated with the ANCs' elective conference this month are likely to dampen sentiment, the trader added.

Government bonds were weaker with the yield on the 2026 paper up 6 basis points at 7.62% and that on the 2015 bond 6.5 basis points higher at 5.53%.

 
bonds  |  rand  |  dollar  |  markets
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilitate herself from splurging on feel-good items and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...