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Johannesburg - The rand was steady against the dollar on Thursday, with scope for modest gains after comments from the US Federal Reserve suggested it will maintain a stimulus-oriented stance that has favoured emerging markets.
By 08:55 the local currency was trading at R10.3025/$, just 0.17% off its close overnight.
Government bonds were firmer, pushing the yield for the secondary market benchmark due in 2026 5 basis points lower to 8.165%.
The yield for the 2015 bond at the shorter end of the curve fell by the same margin to 6.095%.
The rand has clawed back some ground from an 11-week low of R10.4585 hit on Tuesday, cheered in part by indications of progress in wage negotiations in the mining sector.
"Some dovish remarks from the Fed's Janet Yellen overnight, combined with reports that unions and employers are a step closer to a wage compromise, has meant that the rand has enjoyed some short covering," Absa Capital said in a note.
"Even though the rand remains vulnerable over the medium term, the market has become exceptionally long dollars and thus temporary bouts of short covering in the near term are possible."
By 08:55 the local currency was trading at R10.3025/$, just 0.17% off its close overnight.
Government bonds were firmer, pushing the yield for the secondary market benchmark due in 2026 5 basis points lower to 8.165%.
The yield for the 2015 bond at the shorter end of the curve fell by the same margin to 6.095%.
The rand has clawed back some ground from an 11-week low of R10.4585 hit on Tuesday, cheered in part by indications of progress in wage negotiations in the mining sector.
"Some dovish remarks from the Fed's Janet Yellen overnight, combined with reports that unions and employers are a step closer to a wage compromise, has meant that the rand has enjoyed some short covering," Absa Capital said in a note.
"Even though the rand remains vulnerable over the medium term, the market has become exceptionally long dollars and thus temporary bouts of short covering in the near term are possible."
