Rand, bonds edge up ahead of data

2012-12-11 09:37

Johannesburg - The rand firmed marginally on Tuesday ahead of a slew of domestic economic data but stayed within its recent trading range, awaiting further direction from global markets.

The rand was trading at R8.6700/$ at 08:40 from Tuesday's close of R8.6725.

"The data today will not have much impact on the rand. We will continue to look at international factors," said Ion de Vleeschauwer, Bidvest Bank's chief dealer. 

"We're really stuck in the ranges between R8.60-70 and that will probably continue for the rest of the week."

The rand was supported by a stabilising euro as nerves calmed over Italy's latest political turmoil and prospects of more stimulus from the Federal Reserve pinned down the dollar, although weaker-than-expected data could put it under pressure.

Retail sales figures are due at 09:00, with economists expecting year-on-year spending growth on the high street to have slowed to 4% in October.

At 13:00, economists expect manufacturing output to have fallen 1.2%, hit by labour unrest in the mines.

The rand has lost more than 7% since the start of the year and came under intense pressure from August because of wildcat strikes in the mining sector and a yawning current account deficit.

Government bonds rose, pushing yields down 2 basis points to 7.335 on the benchmark 2026 issue and 1 basis point to 5.46% for the shorter-dated 2015 note.

The Treasury will auction R2.1bn of debt spread over the 2031 and 2048 government bonds at 11:00.