* Rand supported by WGBI from Greece woes
* Investors sit it out until the weekend
JOHANNESBURG, June 12 (Reuters) – The rand was firmer
against the dollar on Tuesday, outperforming most of its
emerging market peers while being cushioned by expected inflows
into the South African debt market, with government bonds also
ending positive.
The local market has been cheered by news that South Africa
has been included in the Citigroup World Government Bond Index,
with analysts estimating between $5-$9 billion worth of new
flows into the bond market.
At 1550 GMT, the rand was up half a percent at
8.4298 against the dollar.
Dealers say they do not expect any big positions before the
Greek election on the weekend and the rand is likely to stay in
its recent range until then.
“Greece worries weigh on the market. We’ve seen the rand
firm, that’s got to do with the inclusion of South Africa’s
bonds into the prestigious index. That has helped shake off
worries about Greece’s future to an extent,” said Travis Robson,
a dealer at Global Trader.
The rand has traded near its next support level of 8.50 in
the previous two sessions but if investors sit on the sidelines
then the barrier could hold for longer.
“A lot of guys are sitting on their hands waiting to see
what happens with the Greek election. There’s European jitters
and a lot of volatility around this market at the moment,”
Robson said.
Continued…
