* Rand firms 1.2 percent on dollar, likely to breach
resistance
* Bonds extend gains from oversold levels last week
* Growth in January manufacturing 2.4 pct
JOHANNESBURG, March 8 (Reuters) – South Africa’s rand
gained for the second day against the dollar on Thursday as
confidence returned to investors to take on risky assets with
Greece closer to sidestepping a messy default.
The rand firmed to the 7.50 resistance level, which it
bounced from in early February and could prove sticky for rand
bulls.
Progress in the euro zone boosted risky assets as Greece
gets closer to securing a deal with its private creditors that
will allow it to redeem debt due this month.
If emerging markets continue to be in favour, the local unit
may break through 7.50 to 7.45 and then the 2012 high of 7.4020.
The Reuters Econometer, an index that gauges the outlook for
South Africa’s economy, was higher in February compared to
January. The survey consensus is for the rand to end the year at
7.59, compared to previous estimates of 7.78.
By 1600 GMT the rand was up 1.07 percent on the
dollar at 7.5155, compared to a 7.5960 close in New York on
Wednesday.
Continued…
