Rand likely to stay under pressure

Comment on this story


NewRandMoney

Reuters.

Johannesburg - South Africa's rand began the week on a stable footing against the dollar but could struggle to consolidate gains made after disappointing US jobs data on Friday.

The rand was at 11.0480 to the dollar at 08:37 SA time, 0.1 percent firmer than Friday's New York close.

The currency strengthened beyond the key 11 level to 10.9400 on Friday after US nonfarm payrolls rose by a less-than-expected 113,000 in January, before ending the session at 11.0600.

An ongoing strike in the platinum mining sector which is showing signs of becoming violent, as well as poor sentiment towards emerging markets, could keep the rand under pressure this week.

On Friday, a union shop steward was killed in a clash with police at an Anglo American Platinum (Amplats) mine, one of three affected by a strike that began more than two weeks ago.

“While downside moves below 11.00 have been opened, we expect a sideways drift this morning and we wouldn't be surprised to see some losses as the week progresses,” Rand Merchant Bank analysts wrote in a note.

The yield on the 2026 and 2015 paper government bonds rose 3.5 basis points each to 8.71 percent and 7.13 percent respectively. - Reuters


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks

Business Directory