* Rand could go below 7.60
* Bonds firm, stock futures up
* ANC study rejects nationalisation
JOHANNESBURG, Feb 2 (Reuters) – South Africa’s rand
steadied against the dollar on Thursday after hitting near
five-month highs earlier, with dealers seeing it maintaining its
firmer tone.
Investors were encouraged to buy risky assets on Wednesday
after strong manufacturing data from China, Europe and the
United States, which suggested an improvement in global growth
prospects.
Government bonds mirrored the rand’s strength, with yields
coming down across the curve on the favourable inflation outlook
associated with a strong currency.
The rand was trading at 7.67 against the dollar, a
touch softer than Wednesday’s New York close of 7.6555, which
was its firmest since mid-September.
“The rand’s strengthening streak is likely to continue
today. Therefore, we expect extended selling interest,” Standard
Bank said in a note.
The rand has recovered from 2-1/2 year lows hit in November
but even with this week’s gains, there could still be some
vulnerability.
Continued…
