* Rand pulls back as euro zone gloom hits sentiment
* Bonds flat in lacklustre trader, players still away
JOHANNESBURG, April 30 (Reuters) – South Africa’s rand hit a
near 4-week high against the dollar on Monday but later
relinquished the gains to end slightly down in quiet trade after
local data pointed to a hefty deficit on the trade account
during the fist quarter of the year.
Most local players were still out of the foreign currency
and debt markets after Friday’s Freedom Day holiday and ahead of
another holiday on Tuesday. South African financial markets will
only be back in full on Wednesday.
The rand firmed to 7.7190 earlier in Monday’s
session, its strongest level since April 3, but retreated to
7.7592 by 1536 GMT, down 0.24 percent from its previous close at
7.7401.
It was at 7.7310 just before data from the South African
Revenue Service showed the trade deficit was at 5.5 billion rand
in March after a 7.5 billion rand shortfall in February.
The numbers point to a wider current account for the first
quarter, traditionally an Achilles’ heel for the rand.
On Monday the currency also took its cue from the euro,
which was on track for its worst month since December as data
pointed to further economic gloom for euro zone countries. The
rand tends to closely follow the euro given strong trading ties
between South Africa and that region.
“Until the last bounce in euro/dollar the rand had been
tracking the pair, with little direction in the morning
session,” said Christopher Shiells, emerging markets analyst at
Informa Global Markets.
Continued…
