* Rand trades in a range, activity may pick up Thursday
* Results of Eskom bond auction at 0900 GMT
JOHANNESBURG, June 27 (Reuters) – South Africa’s rand was
steady against the dollar early on Wednesday, moving in a narrow
range as investors remained cautious about taking positions as
they await the outcome of political domestic and international
meetings later in the week.
The ruling ANC is in the second day of a policy conference
aimed at clarifying its stance at issues such as mine
nationalisation and monetary policy.
European leaders are due to hold a summit on Thursday and
Friday to try and resolve the festering euro debt crisis.
The rand was steady at 8.4335 to the dollar at 0635
GMT. The local currency closed at 8.42 on Tuesday, failing to
test 8.45 support which would open up weaker levels.
“We are back to around the week’s opening levels as
participants await more clarity from both the ANC policy
conference on the local front, as well as the EU summit on the
international front,” Absa Capital said in a note to investors.
“In the short term, the rand remains vulnerable to adverse
developments in sentiment, either locally or abroad, and as a
consequence, rand bulls are likely to remain in the shadows for
the time being.”
Dealers say a breach of the 8.35 level could spark further
selling and push the rand to 8.40.
Continued…
