* Trade data points to reduced import pressure on rand
* Foreign demand props up government bonds
JOHANNESBURG Jan 31 (Reuters) – The South African
rand traded slightly firmer against the dollar on Tuesday,
drawing strength from hopes of a successful conclusion to debt
swap negotiations in Greece which boosted risk appetite in
emerging markets.
Government bonds were little changed on the JSE exchange
following signs of increased demand from foreigners seeking
higher yields as interest rates in developed countries remain
depressed.
The rand showed little reaction to data showing a trade
surplus of 4.7 billion rand ($597.77 million) in December
compared with an 8.0 billion deficit in November, as analysts
said the swing bodes well for the currency.
“The data is positive from a GDP differential perspective as
it implies lower imports and relatively robust exports,”
Standard Bank strategist Nomvuyo Guma said.
By 1530 GMT the rand was at 7.7956 against the
greenback, off a session high of 7.7557 and up 0.46 percent from
Monday’s New York close of 7.8320.
“The rand continues to oscillate within a broader range,
very much in line with broader risk sentiment. Today we continue
to track the positive tone in the external emerging market and
risk environment, probably driven by the euro going above the
1.32 level,” Absa Capital trader Duncan Howes said.
“We’re staying more constructive on the (rand) within the
range. We think risk will continue to be driven by events and
news out of Europe and also end of the week we look at U.S.
non-farm payrolls (for direction).”
Continued…
