Rand steady against US dollar

Published Apr 2, 2014

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Johannesburg - South Africa's rand was stable against the dollar in early Wednesday trade, supported by a general uptick in global risk appetite this week despite a fair amount of importer demand for the US currency.

By 08:49 SA time the rand was trading at 10.5850 to the greenback, in line with its New York close on Tuesday.

“It would appear that the carry trade hasn't run out of steam just yet, as higher yielders across the board enjoy a bout of strength,” Standard Bank currency trader Inshaan Omar said in a market note.

“Another go at the crucial 10.5000 mark should therefore not be ruled out,” he said, adding that the 10.5000-6000 range should hold for now.

In fixed income, government bonds eased slightly across the curve, with yields for the benchmark 2026 and 2015 issues each adding 1.5 basis points to 8.5 percent and 6.81 percent respectively. - Reuters

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