* Rand ends the week firmer as support holds, triggers stop
losses
* Bonds follow currency higher in thin volumes
JOHANNESBURG Feb 17 (Reuters) – The rand firmed
against the dollar on Friday for the first day in four as it
retreated from support levels, and bonds ended the week stronger
in thin trade pending inflation data and the national budget
announcement next week.
The rand gained nearly 1 percent against the dollar
in Friday’s session, reversing the week’s weakening trend as
stop losses were triggered overnight.
“There was big (dollar) resistance yesterday at the 7.87/88
level. We saw some exporters selling and I think week-long stops
were triggered in New York time late last night below 7.80, and
now we’re back at support again,” a Johannesburg dealer said.
The rand strengthened to 7.7160 in the session, after
closing at 7.7755 in New York trade on Thursday.
Adding support to the local unit were investors’ hopes that
the Greece bailout package may be secured on Monday, bringing
slight optimism to global markets, which lifted risky assets.
The local bond market was thin on trade on Friday but prices
followed the rand firmer. Dealers said they were waiting for
Monday’s Greece decision then domestic inflation early on
Tuesday, before the year’s Budget policy statement is presented
to parliament at 1200 GMT in Tuesday’s session.
Economists surveyed by Reuters are expecting a wider budget
shortfall than the government had previously forecast but not
increased sovereign issuance, which should support bonds.
The yield on the 2015 bond last traded 6 basis
points lower at 6.60 percent in the session, while the 2026
issue dropped 7.5 basis points to 8.23 percent.
(Reporting by Xola Potelwa; Editing by Ruth Pitchford)
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