Publications
Partners
Johannesburg - The rand firmed against the dollar on Wednesday with investors covering short positions but dealers expect gains to be curbed as markets wait for the publication of the minutes of the US Federal Reserve's June meeting.
The rand failed to break through R10.3000/$ on Monday, inducing a bounce that has taken it to the R10.0000 level.
Dealers say minutes of the Fed's monetary policy committee meeting and chairman Ben Bernanke's speech in the evening should encourage dollar bulls as they are likely to reinforce expectations of the Fed withdrawing its stimulus programme.
By 08:40, the rand was at R9.9765/$, off a R10.0250 close in New York on Tuesday.
Poor trade data out of China, South Africa's biggest single trading partner, should also weigh on the rand as it adds to expectations of subdued domestic exports.
"We believe the recent bout of rand short-covering is not justified on fundamental grounds and as we appear stuck in a R9.9000 to R10.3000/$ range, we would look to go short rand again at current levels ahead of tonight's FOMC minutes and Bernanke's address," Mike Keenan of Absa Capital said in a note to investors.
Government bond yields were down 5 basis points to 7.945% on the benchmark 2026 issue.
The National Treasury will announce issuance plans for next week's weekly auction at 11:00.
The rand failed to break through R10.3000/$ on Monday, inducing a bounce that has taken it to the R10.0000 level.
Dealers say minutes of the Fed's monetary policy committee meeting and chairman Ben Bernanke's speech in the evening should encourage dollar bulls as they are likely to reinforce expectations of the Fed withdrawing its stimulus programme.
By 08:40, the rand was at R9.9765/$, off a R10.0250 close in New York on Tuesday.
Poor trade data out of China, South Africa's biggest single trading partner, should also weigh on the rand as it adds to expectations of subdued domestic exports.
"We believe the recent bout of rand short-covering is not justified on fundamental grounds and as we appear stuck in a R9.9000 to R10.3000/$ range, we would look to go short rand again at current levels ahead of tonight's FOMC minutes and Bernanke's address," Mike Keenan of Absa Capital said in a note to investors.
Government bond yields were down 5 basis points to 7.945% on the benchmark 2026 issue.
The National Treasury will announce issuance plans for next week's weekly auction at 11:00.
