* Rand down 2.4 percent vs dollar in thin trade
* Bond yields rise for six straight days
JOHANNESBURG Dec 12 (Reuters) – The rand fell 2.4
percent against the dollar on Monday and government bonds
extended last week’s losses as South African markets suffered
another bout of investor risk-aversion.
The rand opened at 8.10 and even firmed slightly in early
trade but was down 2.4 percent to 8.2760 by late afternoon as
investors withdrew from risky positions while a solution to
Europe’s debt crisis eludes markets.
“The rand remains on the back foot as it seems fresh
realisations that the (EU) summit provided little to address the
debt crisis are sinking in,” said Anisha Arora, emerging market
analyst at London-based 4Cast.
However, dollar gains on the rand are seen capped below the
8.30 level despite the euro’s weakness in the session, as the
rand’s previously strong correlation with the euro subsides
during thin holiday trade.
“Nevertheless EUR/USD remains a proxy for general risk
appetite and is a key rand river,” Arora added.
Volumes were looking to come in at five-month lows by end of
trade.
Yields on the benchmark four-year and 15-year
government bonds rose for the sixth day.
Continued…
