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Johannesburg - The rand held steady against the dollar early on Tuesday, looking set for a fifth day of recovery from last week's weakness as global risk sentiment turns supportive.
Emerging market assets seen as risky are receiving a boost from planned economic reforms in China and expectations of continued loose monetary policy from the US Federal Reserve.
At 08:37, the rand was at R10.1450/$, the level it closed at in New York on Monday.
The local unit is in its fifth day of recovery from a low of R10.46 hit a week ago, retracing after failing to breach R10.50 support.
"Technically this failure last week of the rand to weaken further will not be ideal for rand bears," said Oliver Alwar, a forex trader at Standard Bank, adding the bank favoured selling rallies to R10.18/22 while looking for a move below R10.07/08, and then R9.98 to R10.00 support.
"We are of the view that the medium-to-longer-term players are long dollars, so cannot discount a move to the downside especially if real money accounts and models begin selling."
Yields on government bonds were also steady at 8.095% on the benchmark 2026 issue and 5.975% on the 2015 note.
Treasury will sell R2.35bn worth of 2041, 2030 and 2048 paper in the session. Results are due after the auction closes at 11:00.
Emerging market assets seen as risky are receiving a boost from planned economic reforms in China and expectations of continued loose monetary policy from the US Federal Reserve.
At 08:37, the rand was at R10.1450/$, the level it closed at in New York on Monday.
The local unit is in its fifth day of recovery from a low of R10.46 hit a week ago, retracing after failing to breach R10.50 support.
"Technically this failure last week of the rand to weaken further will not be ideal for rand bears," said Oliver Alwar, a forex trader at Standard Bank, adding the bank favoured selling rallies to R10.18/22 while looking for a move below R10.07/08, and then R9.98 to R10.00 support.
"We are of the view that the medium-to-longer-term players are long dollars, so cannot discount a move to the downside especially if real money accounts and models begin selling."
Yields on government bonds were also steady at 8.095% on the benchmark 2026 issue and 5.975% on the 2015 note.
Treasury will sell R2.35bn worth of 2041, 2030 and 2048 paper in the session. Results are due after the auction closes at 11:00.
