• Dangerous games

    Employers' body Neasa is playing a potentially dangerous game, says Terry Bell.

  • Rational thinking

    All players should first consider the net result of their actions, says Leopold Scholtz.

  • Telkom's property poser

    BEE may be hindering Telkom's plans to offload redundant real estate, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Rand firms but reprieve may not last

Jan 22 2013 10:13 Reuters
Rands

(File) (Shutterstock)

Related Articles

Bonds drift weaker on rand

Rand seen weaker on mining sector fears

Rand flat ahead of MPC announcement

Weaker rand weighs on bond market

Rand weakens on farmworker strikes

Bonds firm on short covering

 
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
NEXT ON FIN24X

Rand weaker against dollar

2014-07-31 17:56

 
 
 

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
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No need to keep up with the Joneses

Fin24 users provide their own personal tips on how to save money instead of trying to keep up with the Joneses.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

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