* Rand briefly firmer after strong retail sales data
* Bonds flat, market awaits govt budget outline
* Retail sales suggests c.bank may not need to loosen policy
more
JOHANNESBURG, Feb 15 (Reuters) – South Africa’s rand
gave up a brief early rise on positive retail sales data while
government bonds held steady on Wednesday, as caution set in
ahead of next week’s annual budget statement.
The rand briefly rallied on data showing growth in South
African retail sales jumped to 8.7 percent year-on-year in
December, suggesting demand is picking up and the central bank
may not need to loosen monetary policy further.
The rand touched a session high of 7.67 to the
dollar before retreating to 7.7210 by 1550 GMT, little changed
from Tuesday’s close at 7.7225.
“Today’s retail sales data is positive for the local
currency from a GDP differential perspective,” Standard Bank
analyst Thabi Leoka said.
The rand has benefited from portfolio flows from offshore
investors attracted by South Africa’s higher yields relative to
near-zero rates prevailing in most developed countries.
The currency however remains vulnerable to swings in global
risk appetite as market players await a resolution to the debt
crisis in the euro zone, Standard Bank’s Leoka added.
Continued…
