Publications
Partners
Johannesburg - The rand hit its strongest level in nearly a month against the dollar on Monday as investors started returning to emerging markets after weeks of heavy selling.
Johannesburg stock exchange data showed offshore accounts were net buyers of South African bonds and equities last week, breaking a three-week selling streak.
The rand was steady at R10.8450/$ at 15:43 GMT, after earlier hitting R10.8255/$, its strongest level since January 22. Meanwhile the dollar suffered because of weaker-than-expected US economic data.
Dealers said the rand's break through R10.90/$ resistance in the previous session, and its ability to close stronger than that level, suggested further gains in store this week.
Charts showed the next level of dollar support at R10.7940/$.
"However should the dollar see further downside momentum, the rand could be due further recuperation until the next wave of external pressure," said Anisha Arora, an emerging market analyst at 4Cast.
Investor worries about mining labour unrest - a platinum sector strike by the Association of Mineworkers and Construction Union (Amcu) is now in its fourth week - could limit rand gains.
Anglo Platinum said on Sunday it was suing Amcu for $54m (neary R600m) in damages the company says resulted from unruly strikers.
Government bonds were slightly firmer on Monday, tracking the rand. The yield on the benchmark 2026 bond gave up two basis points to 8.645%.
Johannesburg stock exchange data showed offshore accounts were net buyers of South African bonds and equities last week, breaking a three-week selling streak.
The rand was steady at R10.8450/$ at 15:43 GMT, after earlier hitting R10.8255/$, its strongest level since January 22. Meanwhile the dollar suffered because of weaker-than-expected US economic data.
Dealers said the rand's break through R10.90/$ resistance in the previous session, and its ability to close stronger than that level, suggested further gains in store this week.
Charts showed the next level of dollar support at R10.7940/$.
"However should the dollar see further downside momentum, the rand could be due further recuperation until the next wave of external pressure," said Anisha Arora, an emerging market analyst at 4Cast.
Investor worries about mining labour unrest - a platinum sector strike by the Association of Mineworkers and Construction Union (Amcu) is now in its fourth week - could limit rand gains.
Anglo Platinum said on Sunday it was suing Amcu for $54m (neary R600m) in damages the company says resulted from unruly strikers.
Government bonds were slightly firmer on Monday, tracking the rand. The yield on the benchmark 2026 bond gave up two basis points to 8.645%.
