Rand weaker in thin trade

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Published Nov 27, 2015

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Johannesburg - South Africa's rand weakened on Friday in thin trade with US markets closed for Thanksgiving Day holiday, while stocks were set to edge lower along with emerging market peers.

The JSE securities exchange's Top 40 futures index was down 0.28 percent, indicating the index would open 133 points lower.

By 06h45 GMT the rand had weakened 0.13 percent to 14.3100 per dollar, a fresh one week low, extending the previous session's losses when the unit retreated more than one percent as emerging market currencies globally took a hit.

With little local data due in the session, combined with the lack of liquidity, traders expected the currency to drift weaker.

“It is fair to say that the US holiday would have contributed to thinner than normal liquidity and exaggerated moves,” currency strategist at RMB John Cairns said in a market note.

“Even if we get some gains today, the rand will be going into next week at worrying weak levels.”

Government bonds were also weaker, with benchmark issue due in 2026 adding 2.5 basis points to 8.54 percent.

REUTERS

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