• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

See More

Rand finds support as miners return

Feb 20 2013 08:54 Reuters


Company Data

Anglo American Plat Ltd [JSE:AMS]

Last traded 302
Change 6
% Change 2
Cumulative volume 351509
Market cap 0

Last Updated: 17-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Rand weakens on Amplats stayaway

Rand stronger in quiet midday trade

Rand steady vs dollar

Rand slips before G20

Rand nears one-month high

Rand slides on labour unrest


Johannesburg - The rand held steady against the dollar early on Wednesday, and may find more support in the session as protesting miners return to work and calm investor fears about a flare up of violence in South African mines.

Anglo Platinum [JSE:AMS] said workers at its Siphumelele mine were clocking in for their shifts after a walk-out on Tuesday in solidarity with colleagues hurt in a union rivalry clash the previous day.

The flare-up saw investors dump the rand, worrying it might signal a return of the mining clashes that saw at least 50 people killed in the platinum belt last year.

By 06:19 GMT on Wednesday, the rand had recovered losses to trade at R8.85 against the dollar, slightly firmer than its New York close on Tuesday.

Dealers also said foreign buying of high yielding and relatively cheap local assets was propping up the local currency.

"We saw quite a lot of foreigners buying the bond market yesterday. That's seen the rand strengthen to R8.85 levels. There are a couple of foreign banks which feel that the rand is undervalued with regards to other emerging markets," said Brigid Taylor of Nedbank.

Inflation data should also support local assets, if it comes within market expectations. The data is for January and economists polled by Reuters expect prices did not increase from December, remaining at 5.7% year-on-year.

If the number overshoots that expectation, bond yields are likely to take a hit and investors may become more aggressive at the weekly inflation-linked bond sales, where they can hedge against the rise in CPI.

The release will for the first time use data from a 2010-2011 household spending survey. A high January number could be the effect of the new base data on CPI, and a precursor for the rest of the year. The data is due at 08:00 GMT.

Bond yields were down 2 basis points at 5.305% on the 2015 note and 3.5 basis points at 7.24% on the 2026 issue.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

bonds  |  rand  |  markets



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
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!


Luxury living

Exciting new luxury SUV arrives in SA!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht

Money Clinic

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

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote