• The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

  • Losing the plot

    Parastatal leaders have lost focus of what they're supposed to do, says Nonkululeko Gobodo.

All data is delayed
See More

Rand under pressure amid portfolio outflows

Jan 30 2013 09:29
Johannesburg - The rand struggled to regain strength after hitting a four-year low earlier this week and is likely to remain under pressure due to foreign bond holders exiting the market.

The rand was at R9.0434/$ at 08:43, slightly weaker than its close in New York on Tuesday.

Portfolio outflows of up to R4bn ($443m) from the bond market since mid-January have weighed on the currency, while labour unrest has also fuelled negative sentiment about Africa's largest economy.

"Portfolio outflows from the local bond market remain a real concern, given that we have seen R4bn of outflows since mid-January," analysts at Absa Capital wrote in a note published on Wednesday.

"Further capitulation by these foreign bond holders likely would result in extended rand weakness and could create a reinforcing spiral for both the rand and South African bond market in the near term."

Government bonds continued to soften and the yield on the 2026 paper edged up 3 basis points to 7.495% while that on the 2015 issue was 2 basis points higher at 5.435%.

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

rand  |  currencies  |  markets bonds



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
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

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

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote