Johannesburg - The rand eased slightly from a 7-week high
against the dollar on Wednesday but looked set to hold its ground due to strong
appetite for domestic debt from investors becoming less concerned about the
eurozone debt crisis.
The rand was 0.17% weaker at R8.0793 against the dollar at
06:42 GMT from last night’s New York close of R8.0610.
With US markets closed for the Independence Day holiday,
analysts said a recent rally by the rand towards the R8 versus the dollar level
was likely to be the most helpful trading guide.
“With global markets still offering no direction this
morning, the safest bet is probably to think that the trend will remain your
friend,” Rand Merchant Bank said in a note.
Yields on benchmark bonds remained at record lows, with that
on the three year bond slipping one basis point to 5.95% and that on the
longer-dated 2026 paper dropping by the same margin to 7.855%.
On the local front, investors will look for more clues on
the interest rate outlook when the Reserve Bank releases its annual report for
2011/12 at 08:00 GMT.