Rand holds steady against US dollar

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NewRandMoney Reuters.

Johannesburg - The rand held steady against the dollar on Monday, trading in a recent range as global risk aversion eased and investors waited to see the outcome of this week's key data and economic events, including South Africa's budget.

Aversion to emerging market assets abated with some resolution to Ukraine's political crisis, which saw parliament remove the president over the weekend and aim to mend relations with the European Union.

South Africa's currency was at 10.9425 at 08:42 SA time, not far off a 10.9350 close in New York on Friday.

The unit has for several days traded near the 10.9000 resistance area that it needs to break to open up further gains away from 11 rand.

On Friday it oscillated between 11.0500 and 10.9110, with 11.1300 support, the currency's February 13 low, untested.

“We are watching the 10.90 and 11.13 levels for direction of an impending breakout,” said Judy Padayachee, technical strategist for Absa Capital.

A break through 10.90 could open up firmer levels to around 10.80, while weakening past 11.13 could push rand bears to early February lows around 11.30.

Attention this week will be on fourth quarter economic growth numbers, due on Tuesday.

Finance minister Pravin Gordhan tables his 2014/15 budget the following day, a major event for the bond market.

The week closes with trade figures for January.

Yields on government bonds gave up 2 basis points to 8.635 percent on the benchmark 2026 issue and 7.31 percent on the 2015 note. - Reuters


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