* Rand holds steady in high 8.30s
* Seen trading in 8.25-8.50 range
JOHANNESBURG, June 14 (Reuters) – South Africa’s rand traded
in a tight range against the dollar on Thursday but looked set
to track slight firmness in the euro as traders pared extremely
bearish positions in the single currency ahead of the Sunday’s
crucial Greek election.
The rand was barely moved at 8.3803 against the
greenback at 0609 GMT from last night’s New York close of
8.3840.
“The rand is edging stronger in edgy trade,” Rand Merchant
Bank said in a note.
“USD/ZAR is now under 8.40, helped by a rally in EUR/USD,
targeting the low 8.30s as it catches up with other
high-yielding currencies.”
The currency weakened momentarily on Wednesday after
disappointing retail sales numbers but firmed with the euro in
late afternoon trade. It is now expected to trade between 8.25
and 8.50.
The rand often tracks the euro, the currency of its largest
regional trading partner.
Yields on benchmark bonds dropped just one basis point to
6.17 percent for the three-year note and 8.265 percent
for the 14-year bond.
The government is holding a switch auction to roll over a
bond maturing in two years into its 14- and 29-year
issues. The results are due at 0930 GMT.
(Reporting by Vuyani Ndaba; Editing by Ed Cropley)
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