* Weak China GDP weighs on sentiment
* Bonds mixed, market interest lukewarm
* Banks, traders see weak rand outlook
JOHANNESBURG, April 13 (Reuters) – South Africa’s rand slid
against the dollar on Friday as weaker-than-expected Chinese
gross domestic product data hit emerging market sentiment, while
bonds were flat after a holiday-shortened week.
From being the strongest performer against the dollar among
20 emerging market currencies on Thursday, the rand was third
from bottom on Friday as investors spooked by renewed global
growth worries fled to safe-haven assets.
The rand fell more than 1 percent to a trough of
7.9510/dollar before coming back slightly to 7.94 by 1602 GMT,
down 0.95 percent on the day.
“When that Chinese GDP data came out and it was softer than
markets expected we saw quite a fair bounce higher on
dollar/rand. Pretty much through the day it’s been the rand’s
reaction to how the offshore market has factored that data,”
said Sean McCalgan, a market analyst at ETM.
Thirty percent of South African exports are to Asia, making
the rand especially vulnerable to signs of weakening in the
Chinese economy.
“Most of the local banks and traders are still holding a
weaker rand outlook,” McCalgan added.
Continued…
