Share

Rand steady vs dollar, bonds supported

Johannesburg - The rand held steady against the dollar early on Monday, trading stronger than the psychologically key R10/$ level as investors' concerns eased about an early withdrawal of US stimulus.

At 08:54 GMT, the rand was at R9.8870/$, not far off its R9.8800 close in New York on Friday.

"Dollar/rand (is) pushing at the key R9.83/85 support level. A break would open up scope for a proper rand recovery but if the level holds, we could be trapped in a range for a while," said Rand Merchant Bank in a note to clients.

"Assuming no major data surprises, it looks as if tapering will start in September. For us, the key issue is whether foreign investors will return to emerging markets. Initial signs are positive," the bank said, citing data that showed offshore investors buying local bonds and equities last week.

Global markets have been jittery in the past two weeks by the US Federal Reserve announcing it would gradually withdraw stimulus to its economy.

However, US economic growth data last week disappointed, giving hope to markets that the Fed would not reduce its bond-buying programme as early as some had speculated.

On Monday, government bond yields were down 5.5 basis points to 7.85% on the benchmark 2026 bond.

Investors will be watching for local PMI data at 11:00 and vehicle sales data at about 13:00.


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
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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