News Column

Rand Firmer As Global Risk Appetite Rises

June 23, 2014

JOHANNESBURG-South Africa's rand was still on a firm footing against the dollar on Friday after touching 10 day highs the previous session, with investors favouring high-yielding emerging markets after the Federal Reserve signalled US rates would stay low for a while.

The local unit traded at 10,70 against the dollar by 07h03 GMT, up 0,4% from Thursday's close.

Government bonds were largely stable, with the yield for the 2026 paper edging up 1 basis point to 8,32% and that for the bond due next year adding half a basis point to 6,65%.

Local assets took their cue from bullish global markets as investors bet that monetary policy would stay loose in the United States, Europe and Japan for a long time to come.

"South African assets still offer some great emerging market value and we expect real money flows to continue," Standard Bank trader Maemo Rametse said in a morning note. "No major data out today so technicals and flow should determine the trajectory."

However, investors are still worried that a resolution remains elusive to end a crippling domestic platinum strike, which pushed the economy into contraction in the first quarter of the year.

- Nampa-Reuters

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Source: AllAfrica

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