Rand firms against US dollar

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NewRandMoney Reuters.

Johannesburg - South Africa's rand strengthened against the dollar early on Tuesday, tracking an upbeat euro and as emerging market currencies got some breathing space from Ukraine-related selling.

The rand saw a week of daily losses last week as Ukraine tensions soured global risk sentiment, while concerns around a three-month strike in South Africa's platinum mines also kept the rand vulnerable.

But on Monday, emerging market currencies got some relief on views that United States sanctions against Russia related to the Kiev-Moscow battle were not as harsh as expected.

The rand snapped five days of daily losses, extending gains through technical resistance at the 10.60 level on Tuesday.

At 08:41 SA time, the local unit was up 0.3 percent to 10.5900 to the dollar, compared with a 10.6205 close in New York on Monday.

Local markets were closed for a holiday on Monday, and will again be shut on Thursday for a national day, which is expected to keep trading volumes low.

The central bank is due to release private sector credit and money supply data for March at 08:00 SA time on Wednesday while the revenue service releases trade account data at 14:00 SA time, key numbers that could further rand bulls if South Africa's trade position surprises to the upside.

In this session the Treasury will auction 2.35 billion rand in 2023, 2026 and 2036 bonds, with results due after auction closes at 0900 GMT.

Yields were steady at 6.815 percent on the 2015 note and at 8.495 percent on the 2026 issue. - Reuters

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