JOHANNESBURG, July 4 (Reuters) – South Africa’s rand eased
slightly from a 7-week high against the dollar on Wednesday but
looked set to hold its ground due to strong appetite for
domestic debt from investors becoming less concerned about the
euro zone debt crisis.
The rand was 0.17 percent weaker at 8.0793 against
the dollar at 0642 GMT from last night’s New York close of
8.0610.
With U.S. markets closed for the Independence Day holiday,
analysts said a recent rally by the rand towards the 8 versus
the dollar level was likely to be the most helpful trading
guide.
“With global markets still offering no direction this
morning, the safest bet is probably to think that the trend will
remain your friend,” Rand Merchant Bank said in a note.
Yields on benchmark bonds remained at record lows, with that
on the three year bond slipping one basis point to
5.95 percent and that on the longer-dated 2026 paper
dropping by the same margin to 7.855 percent.
On the local front, investors will look for more clues on
the interest rate outlook when the Reserve Bank releases its
annual report for 2011/12 at 0800 GMT.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley)
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