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Johannesburg - The rand got a temporary reprieve from recent selling after data showing a jump in US continuing jobless claims put some pressure on the dollar.
The rand was steady at R10.8850/$ at 14:38 GMT, coming back from a R10.9620/$ five-year low tested earlier in the session. Data showed US weekly continuing jobless claims at their highest in six months.
Nevertheless, dollar strength still looks likely to push the rand toward the psychologically important 11 mark.
"The 2014 bullish bias prevails. We would have to see a stronger pullback at least below R10.73/$ to dent this steep upside trend," said Anisha Arora, an emerging market analyst at 4Cast.
The broadly strong dollar has tested 2008 highs against the rand every session this week, with concerns the US Federal Reserve may start scaling back from its massive stimulus programme adding to worries about economic weakness in South Africa.
Thursday's reprieve is expected to be temporary with the domestic factors that weigh on the rand still in place.
Investors are worried about the threat of strikes in the platinum mines with the Association of Mineworkers and Construction Union (Amcu) saying it could call a strike after speaking to its rank and file, which would hit the world's top producer of the precious metal.
Such a work stoppage would likely be the lever that takes the dollar to the 11 level.
The economy is also seen as one of the "fragile five" countries most vulnerable to the Fed's tapering because of a wide budget deficit, and an even bigger hole on its current account.
Yields on government bonds pulled back from five week highs to trade nearly steady at 8.345% on the benchmark 2026 issue.
The rand was steady at R10.8850/$ at 14:38 GMT, coming back from a R10.9620/$ five-year low tested earlier in the session. Data showed US weekly continuing jobless claims at their highest in six months.
Nevertheless, dollar strength still looks likely to push the rand toward the psychologically important 11 mark.
"The 2014 bullish bias prevails. We would have to see a stronger pullback at least below R10.73/$ to dent this steep upside trend," said Anisha Arora, an emerging market analyst at 4Cast.
The broadly strong dollar has tested 2008 highs against the rand every session this week, with concerns the US Federal Reserve may start scaling back from its massive stimulus programme adding to worries about economic weakness in South Africa.
Thursday's reprieve is expected to be temporary with the domestic factors that weigh on the rand still in place.
Investors are worried about the threat of strikes in the platinum mines with the Association of Mineworkers and Construction Union (Amcu) saying it could call a strike after speaking to its rank and file, which would hit the world's top producer of the precious metal.
Such a work stoppage would likely be the lever that takes the dollar to the 11 level.
The economy is also seen as one of the "fragile five" countries most vulnerable to the Fed's tapering because of a wide budget deficit, and an even bigger hole on its current account.
Yields on government bonds pulled back from five week highs to trade nearly steady at 8.345% on the benchmark 2026 issue.
