• Restoring sanity to SA

    We should be driven by the thought that SA belongs to all who live in it, says Solly Moeng.

  • Clamouring for action

    2017 will see battles between politicians as well as those tired of politicking, says Daniel Silke.

  • Realistic dreaming

    Preparation and sound advice will turn entrepreneurial dreams into reality, says Ian Mann.

All data is delayed
Loading...
See More

Rand expected to weaken further

Dec 03 2012 09:15
Reuters

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
Comments have been closed for this article.
 

Company Snapshot

We're talking about: SMALL BUSINESS

From fossils to finance – that’s been the career trajectory of Dr Merrill van der Walt, a palaeontologist until recently. She is now a statistician with a difference.
 

Money Clinic

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

Voting Booth

SA's avoidance of junk status by rating agencies: Moody's and Fitch

Previous results · Suggest a vote

Loading...