* Rand presses on to stronger levels, testing 8.15
* Poor U.S. jobs numbers spur riskier currencies
JOHANNESBURG, Sept 7 (Reuters) – South Africa’s rand
extended this week’s rally on Friday, hitting a three-week high
against the dollar as sentiment for riskier assets improved
after weaker-than-expected U.S. jobs figures, suggesting a need
for further monetary stimulus.
The rand was up 1.5 percent at 8.1747 at 1530 GMT
from last night’s New York close of 8.3010, after piercing 8.20,
a level it last touched in mid-August.
Emerging assets were in demand for a second day after the
European Central Bank announced an unlimited bond-buying program
on Thursday to help stem the euro debt crisis, pressuring
traditionally safe-haven assets such as the dollar.
Friday’s report showed a smaller-than-expected rise in U.S.
non-farm payrolls in August, setting the stage for the Federal
Reserve to pump additional money into the sluggish economy.
“Now there are a lot of people thinking that the Fed is
going to hurry to do another round of quantitative easing,” said
Ion de Vleeschauwer, a trader at Bidvest Bank in Johannesburg.
De Vleeschauwer said the rand looked set to trade in range
of 8.05-8.15 against the greenback.
Government bonds also gained from the renewed emerging
market optimism. The yield on the three-year bond fell
3.5 basis points to 5.37 percent and that on the 14-year paper
dropped 5.5 basis points to 7.295 percent.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley, John
Stonestreet)
© Thomson Reuters 2012 All rights reserved
