* Rand firms on the back of a euro rally
* Bonds unmoved ahead of key data in the week
By Vuyani Ndaba
JOHANNESBURG, Oct 22 (Reuters) – South Africa’s rand firmed
on Monday against the dollar, boosted by the regional elections
in Spain over the weekend, which removed a potential obstacle to
the country seeking a bailout.
The rand was almost half a percent firmer at 8.6230
against the greenback compared to Friday’s close of 8.6650,
buoyed by a rally in the euro after the Spanish election
results, the currency of its largest trading
partner.
Spain has fallen into its second recession since 2009 and
the International Monetary Fund forecasts the economy will
contract by 1.3 percent next year.
“The euro is a bit stronger, the dollar weak on the day,
there is some importer demand here at 8.60,” said Jan Defouw, a
trader at Standard Bank.
Bonds were little moved ahead of critical inflation data
this week which will set the tone interest rates.
The three year edged up half a basis point to
5.395 percent while the 14-year paper rose 1.5 basis points to
7.58 percent.
Continued…
