* Rand seen weaker, 8.4630 next key level
* Govt bonds still weak, market thin
* Nov consumer inflation due at 0800 GMT
JOHANNESBURG, Dec 14 (Reuters) – The South African
rand languished near a two-week low against the dollar in early
trade on Wednesday, and traders said the currency would probably
test weaker levels amid negative risk sentiment.
Local trade has been taking direction from the battered euro
currency, as investors dump riskier assets and push into the
relative safety of the U.S. dollar.
Analysts say as long as Europe’s crisis remains unresolved,
any risk appetite is unlikely to last for long.
Domestic consumer inflation, due at 0800 GMT, is seen to
have crept higher and breached the top of the central bank’s 3-6
percent target, touching 6.2 percent in November, suggesting
prices may be rising faster than the central bank expected.
Inflation was at 6 percent in October and the bank has
predicted a 6.3 percent peak in the first quarter of next year.
The rand was 0.36 percent firmer at 8.3300 against
the dollar by 0646 GMT near a two-week low and compared to the
close of 8.36 on Tuesday.
Continued…
