News Column

Rand holds steady as investors brace for CPI data, strikes

January 21, 2014

The rand was steady against the dollar early today while market players waited for key inflation data after a US public holiday. The rand has been moving away from five-year lows in recent sessions after heavy selling. The absence of US market players also depressed trading activity, allowing the currency some breathing space. At 0647 GMT , the rand was at 10.8500, not far off a 10.8395 close in New York yesterday. It is expected to stay around current levels for the next few sessions, and needs to break through some resistance levels to open up a deeper pull-back from the low hit last week. "Dollar/rand will need to secure a break below 10.80 to open the door for a stronger retreat lower towards 10.70. Any such retreat is expected to be weak in context of the long-standing upside trend," said Tradition Analytics in a note to clients. The rand failed to break through levels around 10.82-10.81 in the past two sessions. Weak economic fundamentals, such as a gaping current account deficit, and concerns around strikes in the mining sector are expected to keep it under pressure. Today the rand shrugged off news of a planned platinum and gold mine strike with analysts saying it had been expected. - Reuters Daily News

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Source: Daily News (South Africa)

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