Data provided by McGregor BFA
All data is delayed
Loading...
See More

Rand weak but within range

Feb 25 2013 09:12 Reuters
Rands

(picture: Shutterstock) (Shutterstock)

Related Articles

Rand firms slightly in quiet trade

Rand steady, stuck in range

Rand weakens on fears of US data

Rand retreats against resurgent dollar

Rand recovers on German confidence‚ CPI

Bonds stronger on firmer rand

 
Johannesburg - The rand weakened early on Monday and looked likely to come under more pressure this week if domestic economic data comes in weaker than market expectations.

By 08:48, the rand was at R8.8850/$, off an R8.86 close in New York on Friday.

The local currency has traded in a 20 cent range of R8.80 to R9.0 for most of the last month, but this week may give it new direction.

Fourth quarter GDP data is due on Tuesday, which will give a full picture of economic growth for 2012 and also show whether the government's growth projection of 2.7% was too ambitious.

The rand is likely to react negatively to slower-than-expected growth, and may push it through key support at R9/$.

Slowing economic growth has hit revenue collection in Africa's largest economy, widening a hole in the national accounts as government spends heavily to try and stimulate the economy as part of a counter-cyclical fiscal policy.

Finance Minister Pravin Gordhan will announce his budget at 14:00 on Wednesday. A bigger gap in the budget will hit bond yields as the government will need to borrow more from the domestic market.

"Questions around the quantum of bond issuance on the back-end of curve, which has flattened through the previous week with CPI surprising to the downside, and the outlook for the switch auction programme will finally be answered this week with market players expecting some steepness to return to the yield curve," Deon Kohlmeyer, a bond trader for Rand Merchant Bank, said in a note.

Light trade volumes in the bond market are expected to continue until the budget. Dealers are waiting for details of government's programme to switch soon-maturing bonds for longer-dated paper to ease repayments.

Yields were up slightly on Monday morning, at 5.29% on the 2015 note and 7.255% on the 2026 issue .

This week, trade, credit and PMI data are also due on Thursday and Friday.

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
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Numsa prepares for life after Cosatu

Numsa has not only reiterated its call for President Jacob Zuma to resign but it is also preparing for life outside of Cosatu, a report states.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

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