• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Rand recovers after drop

Jun 24 2011 09:17 Reuters

Related Articles

Rand softer, looks abroad for direction

Rand holds firm against dollar

Rand, bonds firm but vulnerable to eurozone

Rand tumbles as Sarb buys forex

Euro falls against dollar on Greece worries

Rand relinquishes gains

 
Johannesburg - The rand regained some of its footing against the dollar on Friday after falling to one-week lows the day before, while government bonds climbed higher due to foreigners seeking high returns.

Yields pulled back from Thursday's three-day highs, with the the four-year issue (ZAR157) giving up 5.5 basis points to 7.44% while that on the 2026 bond fell six basis points to 8.555%.

Data from the JSE securities exchange showed foreigners picked up a net R1.7bn of South African bonds in standard trade on Thursday.

"This is surprising, given that we expected to see outflows on account of the risk-off trade that has played out in the past two trading sessions," Tradition Analytics said in a note.

"That foreigners were prepared to buy South African bonds despite the risk-off scenario is interesting and potentially good news in promoting rand stability."

The inflows to the debt market helped boost the local currency, which touched a session high of R6.8125 against the dollar in early Friday trade after tumbling to R6.8875 the day before on global risk aversion.   

By 08:45 the rand was at R6.8490 to the greenback, barely changed from Thursday's close at R6.8425.

Traders said the rand was likely to find support at the R6.87 level which had triggered dollar-selling by exporters in the previous session. In the same vein, the unit should struggle to pierce R6.80.

The local share market looked set to open in positive territory after a heavy sell-off in the previous session.

The September futures contract was up 1.03% prior to the 09:00 start of trade.
bonds  |  rand

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...