* Rand ends weaker on poor domestic and global data
* Lower commodity prices hit resource-heavy rand
* Bonds come back from best levels, seen overbought
JOHANNESBURG, June 22 (Reuters) – The rand weakened against
the dollar for the second day on Friday, ending at its lowest in
a week and hit by falling metals prices earlier in the day,
which threatened to curb revenues for South Africa’s mining
exports.
The South African currency was also reacting to signals of
soft domestic economic growth in the second quarter after poor
balance of payments data on Thursday. It fell half a
percent to 8.4350 to the dollar, coming off a session high of
8.3380 to the dollar.
The rand had broken resistance at 8.15 on Wednesday but
retreated sharply in the next session after poor domestic data
on the current account and as sentiment towards risky assets
turned negative.
Analysts say it now looks headed for 8.45 support.
The rand is highly correlated with risk appetite and its
deep liquidity makes it susceptible to swings in investor
sentiment.
Dealers say 20 cent and above ranges have become normal in
rand/dollar moves in recent weeks. The currency has lost more
than 9 percent since the start of May, moving from 7.70 to a
three-year low of 8.71 and then to a slight recovery of 8.15
before Friday’s stretch to 8.43.
Continued…
