* Rand within range against dollar, little market interest
* Bonds track currency trading, decent government auction
JOHANNESBURG, June 26 (Reuters) – South Africa’s rand firmed
slightly against the dollar on Tuesday but stayed within its
previous range, with investors waiting on political meetings
towards the end of the week that are expected to give signals on
the domestic economic outlook.
Trade volume was at its lowest level in two weeks, pointing
to a lack of interest until policy meetings locally and abroad
play out.
The ruling African National Congress (ANC) began a meeting
on Tuesday to draw up the party’s policies for the next five
years while European leaders are holding a summit on Thursday
and Friday to try to deal with the euro crisis.
The market is not expecting any real solutions from the
European meeting, which may limit the effect on emerging market
currencies.
In the meantime investors are playing it safe. The rand
was up just 0.13 percent at 8.4765 to the dollar by
1500 GMT, not far from the 8.4875 close in New York on Monday.
“In the last couple of days we’ve seen more people looking
to be long dollar. We haven’t see a great deal of interest today
at these levels,” said Paul Chakaduka of Global Trader.
Besides the euro crisis, investors are nervous that the ANC
conference could come up with policy plans that include greater
state control in Africa’s largest economy. Some members of the
ruling alliance have been demanding the nationalisation of the
central bank and the minerals sector.
Continued…
