Loading...
See More

Rand set to firm for fifth day

Feb 04 2013 09:15 Reuters

(Picture: Shutterstock )

Related Articles

Rand slips on euro strength

Rand firms on short covering

Rand range bound ahead of foreign trade

Rand stable as global markets rally

Rand under pressure amid portfolio outflows

The rand steady vs dollar

 
Johannesburg - The rand steadied against the dollar early on Monday, looking to strengthen for the fifth straight session due to a technical correction that has left many investors trying to cover short rand positions.

The currency was at R8.8547/$ at 08:26, slightly firmer than its New York close on Friday and gathering momentum away from a four-year low of R9.16 hit last month.

The rand managed to break past R8.85 resistance in late trade on Friday, signalling that further gains were likely this session.

"Our range for today is R8.79-8.88, and we are favouring a push below R8.75 later in the week," Absa technical strategist Judy Padayachee said, adding that the dollar's turn-around above R9.15 sets a bigger bearish bias in the coming weeks.

Charts show the rand could retrace all the way down to R8.60.

Investors have a spew of local data to digest this week, including jobless and manufacturing numbers, which will give key signals on the pace of economic growth.

Friday's Purchasing Managers' Index number was in contraction territory for the fifth straight month in January, pointing to a bleak outlook for the key manufacturing industry this year.

The sector is a major employer and contributes 15% of GDP.

Sentiment indicators such as the Reuters Econometer and the Business Confidence Index are also due this week.

Domestic media are reporting the ANC will throw renewed energy into a contentious policy to subsidise the wages of youth workers entering the job market.

The policy, an attempt to deal with chronic unemployment, met stiff opposition from the ANC's union allies and was never implemented.

Government debt was slightly weaker, with the yields on the 2015 and 2026 issues at 5.335% and 7.32% respectively.



Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

market  |  rands
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

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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