* Rand trading weaker on local and international concerns
* Traders eyeing 8.60 against the dollar
JOHANNESBURG, June 25 (Reuters) – South Africa’s rand
weakened in line with other commodity currencies on Monday amid
concerns about faltering global growth and scepticism that
another European Union summit this week will offer any respite
for the debt-ridden region.
European leaders are due to discuss specific steps towards a
cross-border banking union, fiscal integration and the
possibility of a debt redemption fund – talks that are likely to
sway investors’ attitudes to riskier emerging market assets.
The rand was 0.24 percent weaker at 8.4350 at 0645
GMT from Friday’s New York close of 8.4100.
“The rand has continued on a weaker bias. We looking for 8.6
on the rand,” said Brigid Taylor, head of institutional sales at
Nedbank, one of South Africa’s four big retail banks.
“We’re keeping an eye on the euro summit this week as well
as trade deficit numbers towards the end of this week which are
likely to confirm the deterioration in tax revenues.”
In the local bond market, the yield for the three year bond
was up 1.5 basis points to 6.035 percent and that on
the fourteen year paper was up by the same margin to
8.015 percent.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley)
© Thomson Reuters 2012 All rights reserved
Article source: http://feeds.reuters.com/~r/reuters/AfricaSouthAfricaNews/~3/moe4ovUVOCQ/idAFL5E8HP1J520120625
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