* Rand recovery likely to be short-lived
* Bonds gain, no strong rally seen in 2012
JOHANNESBURG Dec 15 (Reuters) – South Africa’s firmed
against the dollar, recovering from two week lows as data showed
U.S. unemployment claims were at a 3-1/2 year low encouraged
investors to take on risk assets.
Government bonds also got a reprieve after a sell-off this
week and yields trended lower.
This recovery might be short-lived though and the rand will
likely maintain its weaker tone as long as the euro zone debt
crisis remains unresolved.
Local traders squared their books ahead of a public holiday
on Friday, which is traditionally the start of Christmas
holidays for most market players in South Africa.
The currency is on course to register its worst yearly
performance in three years, having hit a 2-1/2 year low of 8.61
in November.
The rand was trading at 8.3605 against the dollar
at 1533 GMT, 0.83 percent firmer than Wednesday’s New York close
of 8.4307. It hit a session high of 8.33.
“Euro/dollar hit new highs for the day after US data showed
that the American economy is at least on the right track,” said
Christopher Shiells, emerging market analyst at IGM, adding a
convincing rand recovery was unlikely before year-end.
Continued…
