* Rand back above 8.50 against dollar, bearish outlook
* Weak domestic data this week will weigh, rate cuts
expected
JOHANNESBURG, June 8 (Reuters) – The rand ended the week
down against the dollar, reversing four days’ worth of gains on
Friday as bleak economic prospects for the domestic and global
economies meant investors were dumping the local unit for the
dollar.
Analysts said the rand’s bullish streak since the start of
the week was likely over and the bears would be back
convincingly next week.
The rand was down half a percent at 8.43 at 1625
GMT, slightly recovered from 1.3 percent worth of losses seen
earlier in the session and compared with a 8.39 close in New
York on Thursday.
It firmed to 8.22 this week in what was an overdue
correction from oversold three-year low levels of 8.71 but was
back at 8.50 support on Friday, highlighting the currency’s
vulnerability to Europe’s debt problems and risk sentiment in
general.
“We deem the latest dip off the recent 8.71 three-year high
merely a correction. The last three day’s price action has
formed a bullish pattern on the candlestick charts, suggesting
the correction has run it’s course,” said Kamran Sheikh a
technical strategist at Informa Global Markets.
“We look for some consolidation and advance back towards
8.71 the next week.”
Government bonds also ended weaker with the yield on the
2015 benchmark bond at 6.265 percent while the 2026
issue closed at 8.295 percent.
Continued…
