Rand holds above 11 mark against dollar

Published Feb 12, 2014

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Johannesburg - South Africa's rand held its ground above the 11.0000 mark against the dollar on Wednesday after the release of positive Chinese trade data which boosted risk appetite.

By 08:51 SA time the rand was trading at 10.9650 per dollar, barely changed from Tuesday's New York close at 10.9595.

“This morning we have seen the release of the Chinese data which has surprised the market by showing a massive ... trade surplus, the widest since January 2009,” Standard Bank trader Maemo Rametse said in a note.

“(This) should go some way to ensuring the markets are a little more relaxed about both global, as well as internal Chinese, demand.”

China is a major consumer of South Africa's minerals.

Government bonds were also firmer on Wednesday, and yields inversely dipped from their previous closing levels.

The 2026 paper which the secondary market uses as a benchmark was down 2.5 basis points at 8.73 percent while the 2015 bond at the shorter end of the curve bond eased 2 basis points to 7.09 percent. - Reuters

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