Publications
Partners
Johannesburg - The rand firmed against a broadly weaker dollar as some risk appetite returned to emerging markets on Tuesday, but the local currency was expected to stay within a narrow range ahead of a national election.
The local unit was up 0.3% to R10.5150/$ at 15:01 GMT, trading within a range set on Monday.
International investors were choosing to play it safe before the election day market holiday on Wednesday, dealers said.
"We're stuck. The guys don't want to take any risk now before tomorrow and the outcome of the elections, so there's been a lot of squaring up of positions," said Ion de Vleeschauwer, a trader at Bidvest Bank.
Analysts said instability in Ukraine has taken a back seat in driving sentiment, leaving the rand to look to euro/dollar for direction.
South African financial markets will be closed on Wednesday, and trading will resume on Thursday morning.
If Wednesday's election pans out without major violence, and the worst case scenario of Russian military intervention in Ukraine has not happened, the rand should open with a bid tone on Thursday, dealers said.
President Jacob Zuma's African National Congress (ANC) is slated to win the May 7 vote, even as jobless numbers on Tuesday showed the unemployment rate had increased and the economy had struggled to gain traction.
Analysts said the passing of the election is likely to see the government make more meaningful attempts to help end a 15 week strike in the platinum mines, which has weighed on sentiment towards South Africa.
Yields on government bonds were down 5 basis points to 6.685% on the 2015 note and dropped 5.5 basis points to 8.34% on the 2026 issue.
The local unit was up 0.3% to R10.5150/$ at 15:01 GMT, trading within a range set on Monday.
International investors were choosing to play it safe before the election day market holiday on Wednesday, dealers said.
"We're stuck. The guys don't want to take any risk now before tomorrow and the outcome of the elections, so there's been a lot of squaring up of positions," said Ion de Vleeschauwer, a trader at Bidvest Bank.
Analysts said instability in Ukraine has taken a back seat in driving sentiment, leaving the rand to look to euro/dollar for direction.
South African financial markets will be closed on Wednesday, and trading will resume on Thursday morning.
If Wednesday's election pans out without major violence, and the worst case scenario of Russian military intervention in Ukraine has not happened, the rand should open with a bid tone on Thursday, dealers said.
President Jacob Zuma's African National Congress (ANC) is slated to win the May 7 vote, even as jobless numbers on Tuesday showed the unemployment rate had increased and the economy had struggled to gain traction.
Analysts said the passing of the election is likely to see the government make more meaningful attempts to help end a 15 week strike in the platinum mines, which has weighed on sentiment towards South Africa.
Yields on government bonds were down 5 basis points to 6.685% on the 2015 note and dropped 5.5 basis points to 8.34% on the 2026 issue.
