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Johannesburg - The rand lost ground against the dollar in thin noon trade on Tuesday, despite a firmer euro, while SA bonds were weaker.
"The market is still quiet and we expect most of the players to get back in around a week's time," a local currency trader said.
"The rand will still be taking direction from the euro and from any US data," he added.
At 11:33 local time, the rand was bid at R8.0814 to the dollar from its previous close of R8.0688 on Friday. Monday was a public holiday in SA.
The rand was bid at R10.4938 to the euro from R10.4349 before, and at R12.5757 against sterling from R12.5110 previously.
The euro was bid at US$1.2991 from its previous close of US$1.2930.
Meanwhile Dow Jones Newswires reported that there would not be much more upside for the euro during the trading day.
"I think the worries are going to outshine anything else right now," said Jesper Bargmann, Royal Bank of Scotland's head of G-11 spot currency trading Asia Pacific.
Markets were still bracing for a downgrade of France's sovereign rating, which did not occur in December as many were expecting, he said.
German and French bond auctions this week would provide a test of confidence in eurozone debt that was considered safest, and could dent the euro if they did not go well.
Markets were also focusing on the US Institute of Supply Management manufacturing report for December due later in the global day.
Meanwhile South African bonds were slightly softer in midday trade on the back of some selling.
By 11:50, the benchmark R157 bond was trading at 6.710%, from its previous close of 6.720%. The R207 was bid at 7.900% and offered at 7.885% from a previous close of 7.890% and the R186 was trading at 8.480% from its close of 8.470%.
"There's hardly anything going on - a couple of sellers from the 71 level, we're at 73/74 at the moment. It's very quiet, I think next week is the start of the year," a trader said.
With no local data due today, markets would focus on their global counterparts for news flow and direction.
Foreigners were net sellers of R278.1 million of South African bonds including repo transactions on Friday after net purchases of R36.145 million of local bonds on Thursday, data released by the JSE shows.
Nominal cumulative volume was R15.566 billion on Friday from R22.995 billion on Thursday.
Foreigners were net sellers of R278.105 million of South African bonds excluding repo transactions on Friday after net purchases of R35.826 million of local bonds on Thursday.
For 2011, foreigners were net buyers of R47.359 billion worth of local bonds, excluding repo transactions.
In 2010 foreigners bought net R57.064 billion rand worth of local bonds, excluding repo transactions.
In 2011 for total transactions, including repo transactions, foreigners were net buyers of R37.501 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
"The market is still quiet and we expect most of the players to get back in around a week's time," a local currency trader said.
"The rand will still be taking direction from the euro and from any US data," he added.
At 11:33 local time, the rand was bid at R8.0814 to the dollar from its previous close of R8.0688 on Friday. Monday was a public holiday in SA.
The rand was bid at R10.4938 to the euro from R10.4349 before, and at R12.5757 against sterling from R12.5110 previously.
The euro was bid at US$1.2991 from its previous close of US$1.2930.
Meanwhile Dow Jones Newswires reported that there would not be much more upside for the euro during the trading day.
"I think the worries are going to outshine anything else right now," said Jesper Bargmann, Royal Bank of Scotland's head of G-11 spot currency trading Asia Pacific.
Markets were still bracing for a downgrade of France's sovereign rating, which did not occur in December as many were expecting, he said.
German and French bond auctions this week would provide a test of confidence in eurozone debt that was considered safest, and could dent the euro if they did not go well.
Markets were also focusing on the US Institute of Supply Management manufacturing report for December due later in the global day.
Meanwhile South African bonds were slightly softer in midday trade on the back of some selling.
By 11:50, the benchmark R157 bond was trading at 6.710%, from its previous close of 6.720%. The R207 was bid at 7.900% and offered at 7.885% from a previous close of 7.890% and the R186 was trading at 8.480% from its close of 8.470%.
"There's hardly anything going on - a couple of sellers from the 71 level, we're at 73/74 at the moment. It's very quiet, I think next week is the start of the year," a trader said.
With no local data due today, markets would focus on their global counterparts for news flow and direction.
Foreigners were net sellers of R278.1 million of South African bonds including repo transactions on Friday after net purchases of R36.145 million of local bonds on Thursday, data released by the JSE shows.
Nominal cumulative volume was R15.566 billion on Friday from R22.995 billion on Thursday.
Foreigners were net sellers of R278.105 million of South African bonds excluding repo transactions on Friday after net purchases of R35.826 million of local bonds on Thursday.
For 2011, foreigners were net buyers of R47.359 billion worth of local bonds, excluding repo transactions.
In 2010 foreigners bought net R57.064 billion rand worth of local bonds, excluding repo transactions.
In 2011 for total transactions, including repo transactions, foreigners were net buyers of R37.501 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
