* Rand gains after local traders go off as NY, London buy
* Bonds slightly weaker but foreigners still buying local
debt
JOHANNESBURG Feb 27 (Reuters) – The rand turned
firmer against the dollar in late afternoon trade on Monday,
hitting a fresh two-week high as offshore hedge funds saw the
local currency attractive at levels below previous resistance.
Investors were also cheered by reports of the approval of a
Greece bailout package.
The rand was 0.7 percent firmer at 7.5422 at 1650
GMT, levels last seen on Feb. 8, reversing the day’s losses
after offshore traders came into the market to sell dollars on
Monday.
The currency is now just short of testing resistance at
7.52, a level it bounced from earlier this month.
“There was quite a bit of dollar selling from offshore New
York and London names, we suspect a lot of it has to do with
model and hedge funds at these levels,” a local currency dealer
said.
Rand resistance had previously been at Friday’s high of
7.58. It closed at 7.5950 in New York on Friday.
Dealers said once the 7.58 level gave way on Monday, the
rand made quick gains to current levels and may test 7.52, its
next strong resistance.
Continued…
