News Column

Market Report

January 29, 2014

THE rand stabilised against the dollar yesterday, a day after sliding to a five-year low, as a sell-off of emerging market assets eased. The rand, which weakened to 11.2550 against the dollar on Monday, traded at 11.0500 yesterday, little changed from Monday's New York close. Investors took a breather |from dumping emerging market currencies amid hopes that |Turkey's central bank would |tighten policy to shore up the lira at an emergency meeting later in the day. The central bank in Ankara was expected to raise rates after its decision not to do so last week sent the lira tumbling. While investors anticipate that more emerging markets will tighten policy, South Africa's Reserve Bank is expected to hold its repo rate at 5 percent at the end of a three-day policy meeting today. Despite fears that the weak rand could stoke inflation, the bank may delay raising interest rates given tepid economic growth, analysts said. The yield on the 2026 government bond rose four basis points to 8.715 percent while that on 2015 paper climbed 12 basis points to 6.695 percent. Treasury sold a total of R2.35 billion of its 2030, 2037 and 2041 government bonds yesterday. - Reuters Cape Argus

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Source: Cape Argus (South Africa)

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