Johannesburg - The rand weakened against the dollar on
Friday with global risk appetite turning negative as negotiations on measures
to avoid a recession in the United States stalled.
The currency was down 0.74% at R8.5375 at 07:12 GMT after
ending Thursday's New York session at R8.4750.
The rand tracked the euro, which fell against the dollar on
Friday as a deal to head off $600bn worth of tax hikes and spending cuts that
could push the US economy into recession next year remained illusive.
With a dearth of local economic data and a conference of the
ruling ANC having allayed the worst investor fears over policy changes in
Africa's biggest economy, market focus is now largely on the so-called US
"The probability that a solution will be found as early
as this weekend is low. Markets at least in the short term are likely to
respond negatively," Tradition Analytics said in a note.
Government bonds were flat in thin trading as the year draws
to a close, with the yields on the 14-year and three-year issues each unchanged
from Thursday's closing levels at 7.21% and 5.3% respectively.
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