* Rand pulls back from lows, 8.61 still expected
* Local PMI due at 0900 GMT
JOHANNESBURG, June 1 (Reuters) – The rand steadied in early
Friday trade, pulling back from a 2012 low as exporters came in
to exchange dollars above the 8.50 level, giving temporary
respite to the local unit and a firmer bias to bonds.
The rand had been looking oversold and began a convincing
recovery on Thursday as offshore investors sold dollars in late
trade.
The 8.61 support level hit in November 2011 also held as
local exporters swapped their long-held dollars above 8.55,
dealers said.
By 0635 GMT, the rand was at 8.5275/dollar from a 8.52 New
York close on Thursday.
However the pull-back is seen as a temporary correction of
the overstretched levels and previous projections of a test of
8.61 are still on, especially as domestic and international data
due in the session are likely to be weak.
“The impulsive moves over the past three months dictate the
direction for the next couple of months and our early-June 2012
target of 8.61 for dollar/rand is within reach,” said Judy
Padayachee, a technical strategist for Absa Capital.
Analysts will focus on the Purchasing Managers’ Index at
0900 GMT for signals on the state of the economy after weak GDP,
poor demand for credit and a persistently widening trade deficit
this week pointed to a bleak economic outlook.
Continued…
