• Clueless leaders

    Zimbabwean leaders have no idea how to manage the economy or lead the nation, says Malcom Sharara.

  • Govt is out of touch

    Journalists seems to know more than those paid to govern us, says Mandi Smallhorne.

  • Terry Bell's Inside Labour

    Private firms can't be blamed for picking up anything lucrative on offer, says Terry Bell.

All data is delayed
Loading...
See More

Rand firms but reprieve may not last

Jan 22 2013 10:13
Reuters
Johannesburg - South Africa's rand firmed slightly against the dollar in early trade Tuesday although market watchers said this could be a temporary reprieve as foreign accounts sell local bonds and stocks.

The rand was at R8.8350/$ by 09:32, a 0.27% rise from R8.8634 when markets closed on Monday.

The local currency has remained largely on the ropes since the start of the year, with investors nervous about the negative impact on growth from strikes in the key mining sector bail out of local assets.

Offshore investors sold R3.8bn worth of South African shares and R2bn in bonds last week, data from the JSE securities exchange showed. 

"A lot is being made of the fact that portfolio flows turned very negative last week offering perspective on why the rand has under-performed most other emerging markets," said Tradition Analytics in a market note.

"With South Africa's imbalances being what they are, the economy has become heavily reliant on portfolio inflows to remain well funded and an outflow of more than R6bn in just one week obviously leaves the rand vulnerable" it said. 

Government bonds edged up slightly from recent oversold levels and as some players bet on the off chance of the Reserve Bank surprising the market with a rate cut on Thursday.

The yield on the 2026 benchmark issue was down 3.5 basis points at 7.215% while that for the 2015  bond dipped 2 basis points to 5.32%.

Economists polled by Reuters on Friday also expected rates to stay unchanged after the Jan. 22-24 meeting, as the Reserve Bank balances sluggish growth with risks to inflation, including from a sharply weaker rand. 
  
 

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

bonds  |  rand  |  markets  |  currencies

 
 
 

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
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

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

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...