Share

Rand steadies, bonds weaken

Johannesburg - The rand traded close to its overnight levels against the dollar early on Friday and looked set to tread a narrow range for the day in the absence of market-moving domestic or global data.

Government bonds edged slightly weaker and yields inversely ticked up in a market widely expecting South Africa's Reserve Bank to keep the benchmark repo rate on hold at its bi-monthly policy meeting next week.

The rand was at R10.0150/$ by 08:52 after ending Thursday's New York session at R9.9900.

The yield on government bonds due in 2026, the benchmark for the secondary market, added 4 basis points to 8.005% while that for the 2015 paper rose 3.5 basis points to 6.06%.

The rand has steadied after being buffeted by negative investor sentiment in recent weeks over mining labour unrest, leaving it more than 18% weaker against the dollar since the start of the year.

Global markets have also come to terms with comments from the US Federal Reserve earlier this week which dampened expectations that it would soon wind back its monthly bond-buying programme.

Emerging market assets had been heavily sold in recent weeks as investors pulled out billions of cheap dollars and channelled  them into developed markets offering lower returns but perceived as carrying less risk.

"Ultimately, the rand should experience another consolidative session," Tradition Analytics said in a note.

"Failure to generate a breakout yesterday means that rand gains today will be restricted and it is anticipated that it will trade in a R9.92 to R10.0500 range for most of the day."


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders