* Rand coming back from a near 2-week low
* Likely to break 8.30, opens up 8.38 and 8.50 rand
* Longer-maturity bonds rise on auction announcement
JOHANNESBURG, Aug 16 (Reuters) – South Africa’s rand
recovered from a near two-week low against the dollar on
Thursday, tracking a firmer euro, but analysts said the currency
may weaken again as investors push out expectations for further
global monetary easing.
The rand was also left vulnerable by foreigners steadily
selling bonds in line with a global trend, removing the rand’s
usual cushion, while the longer end of the yield curve climbed
in anticipation of extra issuance.
By 1604 GMT the currency was at 8.2110/dollar, recovering
from a 8.2940/dollar hit earlier in the session, its worst since
August 3. It closed at 8.2365 in New York and needs to fall
through 8.38, its previous low, to test weaker levels close to
8.50 support.
“The rand is not doing that well actually,” said Jim Bryson,
a trader at Rand MB.
Dealers said the rand was suffering as surprisingly strong
U.S. retail sales data decreased expectations the Federal
Reserve will launch a third round of quantitative easing at its
polcy-setting meeting.
Currency investors seemed to be shrugging off reports that
18 people may have died in a violent clash with police at a
Lonmin platinum mine, the world’s third-largest
producer of the metal, in the northwest of Johannesburg on
Thursday.
Continued…
