Rand returns to weaker trend

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NewRandMoney Reuters.

Johannesburg - South Africa's rand stumbled against the dollar on Monday, resuming a weakening trend after posting rare gains in the previous session, as markets looked ahead to the release of domestic economic indicators later in the week.

The local unit slipped 0.2 percent versus greenback to 10.6850 by 16:43 SA time.

The rand weakened against the dollar for most of last week, before snapping a four-day losing streak on Friday after US jobs data came in weaker-than-expected.

The local currency failed to hold that momentum, breaking through the 10.64/$ technical support level.

This week attention shifts to local data, beginning with HSBC's purchasing managers index on Tuesday, followed by manufacturing production numbers on Thursday.

“The rand has been on the back-foot recently. The HSBC number should reinforce the obvious problems that we have in our economy and put it under some pressure,” said Cheslyn Francis, a trader at Afrifocus.

“The focus has and will be a wait-and-see approach over the next day or two.”

Government bonds on the other hand traded stronger, with yields on both benchmark bonds down for the day.

The yield on the highly-traded paper due next year shed 3 basis points to 6.66 percent while the paper due in 2026 dropped 5 basis points to 8.28 percent. - Reuters



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