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* Rand rallies as investors buy emerging market assets
* Bond yields expected to go lower on weak data
JOHANNESBURG, June 18 (Reuters) – The rand gained over one
percent against the dollar in early Monday trade, starting the
week on a firmer footing after Greek elections at the weekend
signalled the European country would not immediately leave the
euro.
Emerging markets gained as investors bought into risky
assets once again after fears last week that Greece could leave
the euro, resulting in a messy break up of the monetary union.
Greek parties who support a bailout won a slight majority at
the weekend election.
The rand strengthened to a week high of 8.2334 in
the early morning session, compared with a 8.3525 close in New
York on Friday.
Analysts say the rand is benefiting from investor relief
that there will not be a messy break-up of the euro bloc just
yet. However the rally is unlikely to last as uncertainty
relating to Greece and the rest of the euro region remains.
The rand is likely to find 8.20 a tough barrier to break,
after the level provided strong rand resistance in May. On the
weaker side, it should find support at 8.35.
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