News Column

Rand steady before US jobs report

February 7, 2014

The rand was at 11.0350 to the dollar at 8.16am, barely changed from yesterday's New York close.

It rose more than 1 percent to 10.9760 yesterday as emerging market currencies rallied on a weaker dollar.

The US will release the closely watched non-farm |payrolls report later today which will determine how |the dollar performs and whether the rand can maintain its present stability.

"We believe that the true litmus test for the rand will be its reaction to today's US employment report release for January," Absa Capital analysts wrote in a note.

"If the report proves encouraging then the rand |is likely to incur a fresh bout of weakness, while a disappointing result could ensure further short covering into the weekend," analysts said.

The yield on the 2026 government bond fell 5 basis points to 8.655 percent while that on the 2015 paper dropped 5.5 basis points to 7.045 percent. - Reuters

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Source: Daily News (South Africa)

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