• Inside Labour

    Brexit should send warning signals to worker organisations everywhere, says Terry Bell.

  • Racial redress

    The next adult generation is at risk of being polarised on the basis of skin colour, says Solly Moeng.

  • To do list

    Keep separate lists to ensure your to-dos don't get cluttered and gain stress-free productivity, Ian Mann.

All data is delayed
Loading...
See More

Rand steady vs dollar

Feb 11 2013 09:26
Reuters
Johannesburg - The rand was steady against the dollar early on Monday but looked pressured by a weaker euro in the absence of any impetus from Asia, where many markets are closed for the Lunar New Year holiday.

By 08:49, the rand was flat at R8.88/$.

The local unit weakened for three sessions at the end of last week. It had been strengthening in a technical correction since the start of the month, but found strong resistance at R8.80.

Charts show if the rand manages to break the R8.80 level, it could strengthen all the way to below R8.70 levels hit in early January.

However, such moves may have to wait for liquidity to pick up when Asian investors return from holiday.

A weaker tone on the euro may put the rand under some pressure this session.

The eurozone consumes a quarter of South African exports, making the local unit vulnerable to moves by the single currency.

"Although the rand has enjoyed some short covering against a number of the crosses, the fact that the euro has stopped strengthening may hinder some of the rand's recovery prospects," Absa Capital strategist Michael Keenan said. 

Yields on government bonds were slightly higher at 5.31% on the 2015 note and 7.30% on the 2026 issue.

Retail sales and mining production numbers are due on Wednesday and Thursday respectively, which should give an overall view of how the consumption and production sectors of the economy fared at the end of last year.       

President Jacob Zuma will deliver his yearly State of the Nation address, outlining government's plan for the year, on Thursday.

The speech often contains signals of what may be contained in Finance Minister Pravin Gordhan's February 27 budget.

Investors are looking at the budget to see if government increases borrowing plans as dealers expect.

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

bonds  |  rand  |  markets  |  currencies

 
 
 

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
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

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

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...