* Markets cautious ahead of Greek vote
* Range of 8.35-8.50 vs dollar seen for rest of week
JOHANNESBURG, June 13 (Reuters) – South Africa’s rand
steadied against the dollar on Wednesday and was expected to
trade in a tight range ahead of a crucial weekend election that
will determine Greece’s future in the euro zone.
At 0637 GMT, the rand ticked down to 8.391, largely
unchanged from Tuesday’s New York close of 8.39. The currency is
expected to trade within 8.35 to 8.50 per dollar from now until
the end of the week.
Since the start of the week, the unit has been buoyed by
Citi’s confirmation it will include South African debt in its
prestigious world bond index, opening the door for major
portfolio inflows.
But deepening concerns around the Greek election on June 17
that would bring to power parties opposed to its current bailout
plans and force a disorderly exit from the single currency have
left investors on edge.
“Markets remain very cautious and tentative ahead of the
Italian auction this week as well of the Greek elections on
Sunday,” said Brigid Taylor, head of institutional sales at
Nedbank.
“A lot of position-flattening in the market is causing it to
be relatively range-bound. We still like rand weaker, because we
think there is a lot of contagion that still remains in the
system and uncertainty.”
If Greece were to leave the euro zone, emerging market
currencies such as the rand would be hit on a negative risk
sentiment.
Yields on the benchmark bonds slid just one basis point to
6.22 for the three-year note and 8.29 for the 14-year
bond.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley)
© Thomson Reuters 2012 All rights reserved
