* Rand steady but likely to weaken
* Global growth fears weighing once more
JOHANNESBURG, June 22 (Reuters) – South Africa’s rand held
steady against the dollar on Friday after falling the previous
day on the back of current account data that suggested Africa’s
biggest economy was suffering from Europe’s waning demand for
its exports.
The rand was little-changed at 8.3813 against the
dollar at 0648 GMT from last night’s New York close of 8.3800.
“It’s unfortunate that global growth fears are filtering
into the market again,” said Ion de Vleeschauwer, a trader at
Bidvest Bank.
“The market was disappointed that the Fed did not do any
quantitative easing earlier in the week. That just put the skids
back on the euro and boosted the dollar.”
Global growth concerns are expected to exert more pressure
on the currency today as international investors retreat from
overseas markets after figures showing China’s factory sector
shrank for an eighth straight month.
Business activity in the euro area contracted for a fifth
straight month and U.S. manufacturing grew at its slowest pace
in 11 months, according to data released on Thursday.
Traders said the rand could trade in a wide 8.20-8.50 range,
but with a bias towards weakness.
Government bonds also eased, with yields rising 3.5 basis
points to 6.075 for the three year bond and 8.08
perform the 14-year paper.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley)
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