• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

Loading...
See More

Rand softer, bonds flat

Jan 23 2013 09:29 Reuters
Rands

(File) (Shutterstock)

Related Articles

Rand fairly quiet‚ awaits MPC decision

Bonds drift weaker on rand

Rand seen weaker on mining sector fears

Weaker rand weighs on bond market

Rand weakens on farmworker strikes

Rand firms but reprieve may not last

 
Johannesburg - The rand remained under pressure against the dollar on Wednesday and bond yields looked set to trend higher as reports of violent protests added to uncertainty over the outlook for the struggling economy.

Consumer inflation data due at 10:00 is likely to  cement the market view that the Reserve Bank will leave interest rates unchanged on Thursday, especially if the data surprises above market expectations of a 5.7% year-on-year rise.

The rand was at R8.8850/$ at 09:00, slipping 0.34% from Tuesday's New York close at R8.8550.

Government bonds were little-changed from overnight levels, with the yield on the benchmark note due in 2026 flat at 7.255% and that for the 2015 bond adding one  basis point to 5.36%.

"Price action has been pretty poor with some offshore disinvestment, and with the currency lagging so are other asset classes. South Africa is definitely falling behind its emerging market peers right now," Citi bond trader Mark Southworth said.

"I'm not sure if we're going to have a real panic sell-off but it does look as if yields can drift a little bit higher today."

Foreign investors have been reluctant to buy strongly into local assets this year as Africa's biggest economy grapples with instability in the mining sector after violent strikes last year that hit economic growth.

Investors are now nervous that protests in the industrial town of Sasolburg, where residents have burnt vehicles, barricaded streets and looted shops, could signal a new wave of the unrest in townships over poor basic services.

"There is still potential for the rand to react negatively to headlines," said Standard Bank trader Warrick Butler, predicting a R8.82-90 range for the currency in Wednesday's session.

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

rand  |  currencies  |  markets bonds

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.
 
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people

Money Clinic

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

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote

Loading...