News Column

Rand firmer as Ukraine deal stabilises trade

February 23, 2014

The rand turned firmer against the dollar yesterday as global risk aversion eased, giving respite to emerging markets that took the rand towards 10.90 resistance.

The rand strengthened to 10.9275 against the dollar, compared to a 10.9950 close in New York on Thursday.

Dealers said trade was less choppy than in previous sessions on Friday as the political crisis in Ukraine came to some resolution, which lifted emerging market assets.

The rand's gains will need to break through resistance at the 10.90 level to signal a convincing turn to a firmer path.

However, violence in the mines may put a lid on the rand's gains as investors worry about a repeat of the August 2012 clashes where police shot dead 34 striking miners at Lonmin's Marikana mine.

In the latest violence, a miner was attacked and set alight at one Anglo American Platinum mine. Yesterday government bonds turned firmer with the rand, with the yield on 2015 note previously hardest hit by a weak rand, giving up two basis points to 7.33 percent, while the 2026 benchmark yield fell one basis point to 8.655 percent. - Reuters

Weekend Argus

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Source: Weekend Argus (South Africa)

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