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Rand holds steady against US dollar

Johannesburg - The rand held steady against the dollar with investors waiting to see if striking South African metal workers would accept a wage deal from employers that would end a 3-week work stoppage.

The rand was also looking offshore for further impetus after breaching the 10.5000/dollar resistance level to hit a 2-month high in the previous session.

At 08:28 SA time, the currency was at 10.5200 to the dollar, little-moved from its 10.5295 close in New York on Thursday.

However, dealers are starting to wonder whether the rand could be overbought, especially if the Numsa metalworkers union does not accept a wage deal to end its industrial action.

“Although the US dollar index is stretching towards last month's high, the rand held up better against the dollar. However, we remain concerned about the overbought rand reading, and today we are watching the 10.40 and 10.60 levels for direction,” Barclays Africa technical strategist Judy Padayachee said.

In the bond market, yields also steadied on the benchmark government paper, with the issue due next year trading at 6.65 percent, while the 2026 bond was at 8.15 percent. - Reuters

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