Data provided by McGregor BFA
All data is delayed
See More

Rand firmer on improved global sentiment

Oct 18 2012 09:57 Reuters

Related Articles

Rand weakens on further downgrades

Strikes, downgrades shake rand

Rand firms, bond yields decline

Rand falls further on downgrade

Rand on back foot after S&P downgrade

Rand rallies but strikes limit gains


Johannesburg - The rand firmed in early Thursday trade as the euro held near a one-month high against the dollar, lifting investor optimism towards riskier emerging market assets despite the continued turmoil in the domestic mining sector.

The rand was 0.5% firmer at R8.5600 against the greenback at 06:40 GMT, from the close of R8.6020 in New York on Wednesday.

The currency slumped to within a whisker of R9.0 to the dollar last week - a three-and-a-half year low - amid concerns about the impact on growth of weeks of wildcat walkouts in South Africa’s mines.

Some miners are gradually returning to work, although tens of thousands in the platinum and gold sector remain on strike and Gold Fields [JSE:GFI] looks likely to fire 23 000 wildcat strikers after a 12:00 GMT deadline expires today.

The rand has rallied more than 4% since then - brushing off a ratings downgrade by S&P - buoyed by a rally in the euro after Spain avoided a ratings cut by Moody’s.

Better-than-expected housing data from the United States as well as improved industrial production and retail sales figures out of China also improved global sentiment.

Market analysts say the risk of a blow-out in the local currency has receded, with support building round the R8.58 level.

“The fact that a lot of the bad news has been washed under the carpet makes it look like we could have a little bit of a pull-back now,” said Warrick Butler, a currency trader at Standard Bank.

“But I think down to R8.45-47, you’d probably start seeing importers get back into the market again.”

Government bonds were mixed after a rally on Wednesday in line with the currency.

The yield on the 2015 bond was up 1 basis points to 5.37% and that on the 2026 paper was down 3 basis points to 7.58%.

bonds  |  rand  |  mining unrest  |  markets


Read Fin24’s Comments Policy 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

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.

Zille: Only DA can challenge ANC in F State

The DA is the only party that can challenge the ANC in the Free State, opposition party leader Helen Zille says.


Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

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