South Africa’s rand softer, global growth woes a drag

South Africa’s rand traded a touch softer against the dollar on Monday and remains vulnerable to dim global economic prospects while retail sales numbers out later in the week will provide the latest clue on the domestic interest rate outlook.

South Africa’s rand traded a touch softer against the dollar on Monday and remains vulnerable to dim global economic prospects while retail sales numbers out later in the week will provide the latest clue on the domestic interest rate outlook.

By 0649 GMT the rand was 0.42 per cent weaker at 8.1045 to the dollar compared with Friday’s New York close at 8.0710.

“The market still seems wary of any negative news out of Europe,” Standard Bank trader Warrick Butler said.

“Given the lack of economic data out today and in the absence of any major news we will continue to play the 8.0600-8.1100 narrow range.”

The rand has lost nearly 9 per cent from this year’s highs around 7.40/dollar in February, battered by risk aversion as investors worry that debt problems affecting the euro zone could spread.

Government bonds were largely steady in early Monday trade, with the yields on the three-year and 14-year benchmarks each dipping just half a basis point to 5.63 per cent and 7.405 percent respectively.

Reuters

 

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