* Rand hovering around 8 support, bonds slightly weaker
* Inflation, retail sales data the week’s focus
JOHANNESBURG, April 16 (Reuters) – South Africa’s rand was
trading weaker above the 8 rand to the dollar level early on
Monday, pushed by safe haven buying on fresh fears about the
euro zone’s debt problems souring appetite for risk.
Analysts expect the currency to trade above 8 rand by the
end of the month because of rising Spanish and Italian bond
yields and weak first-quarter Chinese growth, which will likely
depress the rand.
The rand was down 0.7 percent at 8.01 at 0635 GMT,
off a 7.955 close in New York on Friday.
“We have maintained that dollar/rand will target 8.0675 –
the January 25 high – on the upside, with the drop to 7.860
attracting in buyers,” said Christopher Shiells, emerging
markets analyst at Informa Global Markets.
Shiells expected the rand to trade near 8.0 for most of the
session, with attention on the rise in euro zone periphery
yields.
The 7.86/7 level may form a barrier to any rand gains, while
8 rand provides support.
Later in the week local market focus will turn to inflation
and retail sales data due on Wednesday. Initial analysts’
expectations are for easing inflation and better growth in the
retail sector.
Continued…
