The rand pared earlier gains but was little changed against major currencies shortly before midday on Tuesday‚ as global growth sentiment supported emerging markets — but analysts called for caution.
The rand had weakened against the dollar on Monday as traders squared their positions ahead of Tuesday’s US Independence Day holiday.
Global markets are expected to be risk-off until US markets re-open‚ but the shine could be coming off emerging-market bonds‚ analysts said.
At 11.30am‚ the rand was at R13.2135 to the dollar from R13.2155‚ at R14.9935 to the euro from R15.0175‚ and at R17.0732 to the pound from R17.0980.
The euro was at $1.1348 from $1.1364.
Recent positive global economic growth signs and low inflation prints in the US and Europe should support the rand‚ but a meaningful recovery could be some way off‚ Rand Merchant Bank currency strategist John Cairns said.
Sentiment towards the local currency was poor and foreigners are selling local assets due to improved global yields. Various key central banks are still talking about policy tightening‚ Rand Merchant Bank currency strategist John Cairns said.
"Several heavyweight investors are losing faith in the rand’s ability to produce a superior real return on yield‚ which has been a saving grace in recent times‚" TreasuryOne analyst Phillip Pearce said.
Global markets will be closely watching the release of Federal Reserve open market committee minutes on Wednesday‚ as US non-farm payroll data is expected on Friday.
Investors will also be paying close attention to the ANC policy conference‚ which ends on Wednesday. There are some fears the ruling party could switch to populist economic policies to shore up electoral support.
Business Day reported that Finance Minister Malusi Gigaba was preparing to join the Reserve Bank in taking a recent report from Public Protector Busisiwe Mkhwebane recommending the Bank’s mandate change on review.
While not adopted‚ there have also been "radically ridiculous" calls from some ANC delegates‚ such as scrapping the Public Finance Management Act and Financial Intelligence Centre Act‚ Pearce said.
-BusinessLIVE
Source: Tiso Black Star Group Digital.
Rand weakens slightly as ANC conference continues
The rand had weakened against the dollar on Monday as traders squared their positions ahead of Tuesday’s US Independence Day holiday.
Global markets are expected to be risk-off until US markets re-open‚ but the shine could be coming off emerging-market bonds‚ analysts said.
At 11.30am‚ the rand was at R13.2135 to the dollar from R13.2155‚ at R14.9935 to the euro from R15.0175‚ and at R17.0732 to the pound from R17.0980.
The euro was at $1.1348 from $1.1364.
Recent positive global economic growth signs and low inflation prints in the US and Europe should support the rand‚ but a meaningful recovery could be some way off‚ Rand Merchant Bank currency strategist John Cairns said.
Sentiment towards the local currency was poor and foreigners are selling local assets due to improved global yields. Various key central banks are still talking about policy tightening‚ Rand Merchant Bank currency strategist John Cairns said.
"Several heavyweight investors are losing faith in the rand’s ability to produce a superior real return on yield‚ which has been a saving grace in recent times‚" TreasuryOne analyst Phillip Pearce said.
Global markets will be closely watching the release of Federal Reserve open market committee minutes on Wednesday‚ as US non-farm payroll data is expected on Friday.
Investors will also be paying close attention to the ANC policy conference‚ which ends on Wednesday. There are some fears the ruling party could switch to populist economic policies to shore up electoral support.
Business Day reported that Finance Minister Malusi Gigaba was preparing to join the Reserve Bank in taking a recent report from Public Protector Busisiwe Mkhwebane recommending the Bank’s mandate change on review.
While not adopted‚ there have also been "radically ridiculous" calls from some ANC delegates‚ such as scrapping the Public Finance Management Act and Financial Intelligence Centre Act‚ Pearce said.
-BusinessLIVE
Source: Tiso Black Star Group Digital.
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