JOHANNESBURG, April 10 (Reuters) – South Africa’s rand
recovered slightly against the dollar on Tuesday but was still
within sight of the previous day’s 2-1/2 month low as investor
sentiment remained jittery due to uncertainty over the global
economy.
The local currency edged up slightly after data showed
net gold and foreign exchange reserves fell in March, suggesting
a lower gold price and a stronger dollar during the month curbed
central bank intervention in the market.
Johannesburg markets reopened after being closed on Friday
and Monday for the Easter holiday.
The rand was 0.22 percent firmer at 7.87 to the
dollar by 0642 GMT after ending Monday’s session in New York at
7.8875. The currency hit a low of 7.9150/dollar on Monday, the
weakest it has been since Jan. 25 according to Reuters data.
The rand could find support this week from rekindled
expectations of quantitative easing in the United States,
following the release of weaker-than-expected jobs data from the
world’s largest economy last Friday.
Commodity currencies like the rand and the Australian dollar
should also be boosted by China’s increased imports of crude
oil, suggesting the world’s biggest market for resources is
still likely to generate demand for commodities, Tradition
Analytics said in a note.
“Although a full-blown … recovery is not as yet evident,
all these currencies have at least stabilised somewhat as they
find some support,” it said.
Government bonds firmed in early trade, with the yields on
the benchmark three-year paper and the longer-dated
issue due in 2026 each shedding four basis points to
6.78 percent and 8.51 percent respectively.
(Reporting by Stella Mapenzauswa; editing by David Dolan)
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