Rand maintains recovery mood

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NewRandMoney Reuters.

Johannesburg - South Africa's rand held broadly stable within a recent trading range against the dollar early on Wednesday, building on its slight recovery from last week's five-year lows as global risk sentiment improved slightly.

Analysts say the lack of any negative emerging-market news is giving developing country assets in countries some breathing space while investors wait for clues later this week about US employment and further tapering from the Federal Reserve.

The rand was down 0.25 percent at 11.1275 to the dollar at 08:49 SA time, weakening within a range set in the previous session.

“The absence of any further shocks has seen global risk assets recovering while safe haven plays such as the Swissie, yen and treasuries have been losing ground,” Rand Merchant Bank strategist John Cairns said in a note.

The rand may try to breach the key 11.0 rand level on the firmer side if risk sentiment remains positive this week.

However, strikes in the platinum sector are likely to limit any gains.

On the weaker side, 11.40 is seen as the currency's next support level.

Yields on government bonds were steady at 8.795 percent on the benchmark 2026 issue and at 7.135 percent on the shorter-dated 2015 note. - Reuters

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