* Rand slightly firmer vs dollar, but stay within range
* Bonds end mixed on the benchmarks
JOHANNESBURG Dec 29 (Reuters) – South Africa’s rand
firmed against the dollar on Thursday with fewer importers
around to buy dollars towards year-end but decent two-way trade
left 8.10 resistance intact.
The currency traded in a 10 cent range between 8.12 and 8.22
per dollar in Thursday’s session. It attempted 8.10 in
the previous session but failed to break through that level.
If the rand manages to strengthen past 8.10 — a level
attempted in the past week and in November — 8 rand forms the
next area of resistance.
The currency is likely to end on the weaker side of 8 this
year but with a firmer bias as importers stay out of the market
at the end of the year.
“I would also say that traders are happy where the rand is
at the moment. The big risk sell-off that saw USD/ZAR hit 8.6100
may have been seen as a bit extreme, so players are just sitting
and waiting to see what happens,” said Christopher Shiells, an
emerging markets analyst at Informa Global Markets.
“(However) they have not turned bullish on the rand and want
to be able to get back on the dollar if risk comes off again
sharply in 2012, whilst at the same time, long term most people
think the rand is due a rally, perhaps later in 2012.”
The dollar has gained about 23 percent on the rand this year
and while Europe’s debt problems are unresolved, the local unit
is likely to remain under selling pressure early in the new
year.
Continued…
