Publications
Partners
Johannesburg - South Africa's rand rose against the dollar on Tuesday but the market remained subdued as the US government shutdown dragged on.
The rand was at R9.9450/$ at 14:53 GMT, up 0.6% from Monday's New York close.
Traders expect the rand to be rangebound until US policymakers reach an agreement to restart the government. But with the looming October 17 deadline for lawmakers to raise the US borrowing limit to avoid a default, emerging market currencies may be vulnerable.
"Everyone is hanging on an edge to see whether anything comes out of the US," said ETM market analyst Luke Barnett.
"As we move closer to the US ceiling deadline it's going to have an increasing effect on the market as we wait to see what the result is going to be ... Until then everyone's waiting on the sidelines."
Government bond yields edged lower, declining 7 basis points on the 2015 paper to 6.05% and 1 basis point on the 2026 issue to 8.025%.
South Africa's Treasury sold a total R2.35bn of its 2023, 2031 and 2037 government bonds on Tuesday, with yields higher than the previous week.
The rand was at R9.9450/$ at 14:53 GMT, up 0.6% from Monday's New York close.
Traders expect the rand to be rangebound until US policymakers reach an agreement to restart the government. But with the looming October 17 deadline for lawmakers to raise the US borrowing limit to avoid a default, emerging market currencies may be vulnerable.
"Everyone is hanging on an edge to see whether anything comes out of the US," said ETM market analyst Luke Barnett.
"As we move closer to the US ceiling deadline it's going to have an increasing effect on the market as we wait to see what the result is going to be ... Until then everyone's waiting on the sidelines."
Government bond yields edged lower, declining 7 basis points on the 2015 paper to 6.05% and 1 basis point on the 2026 issue to 8.025%.
South Africa's Treasury sold a total R2.35bn of its 2023, 2031 and 2037 government bonds on Tuesday, with yields higher than the previous week.
