* Rand ends weaker, retreats from 3-1/2 week highs
* Dealers position for long weekend
* March PPI eases, rates outlook unchanged
JOHANNESBURG, April 26 (Reuters) – South Africa’s rand ended
weaker against the dollar on Thursday, bouncing back from a big
resistance area partly as dealers squared their positions before
a long weekend.
South African markets will be closed on Friday for a
national holiday, while next week will also be a four-day week
due to the Labour Day holiday on May 1.
The rand was down 0.6 percent at 7.79 at 1603 GMT,
weakening in the afternoon as dealers positioned to be away for
a couple of days with normal trading volumes expected only on
Wednesday.
The rand had tested highs from three and a half weeks ago
before bouncing at 7.7250 resistance.
“A few of the variables have soured slightly and it’s just
reflected in the rand weakening off its best levels. I wouldn’t
read too much into that, it’s fairly thin market conditions,”
said George Glynos of ETM, referring to choppy Wall Street
trading and weak European data.
The rand managed a convincing break through the 7.78 area
that it had flirted with for most of the week, and 7.72 is up
next for rand bulls, but this is likely to be a tough barrier.
Yields on the government benchmarks were little changed from
their close. The three-year note dropped two basis
points to 6.475 percent while that on the 14-year issue
was steady at 8.18 percent.
Producer inflation data for March showed factory gate prices
had eased, adding to the view that inflation is contained and
the central bank will not move on interest rates this
year.
(Reporting by Xola Potelwa; Editing by Ruth Pitchford)
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