• Restoring sanity to SA

    We should be driven by the thought that SA belongs to all who live in it, says Solly Moeng.

  • Clamouring for action

    2017 will see battles between politicians as well as those tired of politicking, says Daniel Silke.

  • Realistic dreaming

    Preparation and sound advice will turn entrepreneurial dreams into reality, says Ian Mann.

All data is delayed
Loading...
See More

Rand under pressure amid portfolio outflows

Jan 30 2013 09:29
Reuters
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

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
Comments have been closed for this article.
 

Company Snapshot

We're talking about: SMALL BUSINESS

From fossils to finance – that’s been the career trajectory of Dr Merrill van der Walt, a palaeontologist until recently. She is now a statistician with a difference.
 

Money Clinic

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

Voting Booth

SA's avoidance of junk status by rating agencies: Moody's and Fitch

Previous results · Suggest a vote

Loading...