* Rand might test 7.90 in few days
* Bonds under pressure, focus on budget
JOHANNESBURG Feb 16 (Reuters) – South Africa’s rand
weakened against the dollar on Thursday but was off two-and-half
week lows hit earlier after higher than expected U.S. data
boosted risk appetite.
South African government bonds also weakened in line with
the rand and are expected to stay under pressure before the
National Treasury’s Budget next Wednesday.
The rand remains vulnerable with the Greek debt crisis still
unresolved and the market will have to wait for Monday to hear
whether Athens will secure a bailout package to avert a
disorderly debt default.
The rand fell as much as 1.5 percent on the day to
hit 7.88 to the dollar, its weakest since Jan 30. By 1553 GMT,
it had come back to 7.8045, 0.55 percent weaker than Wednesday’s
New York close of 7.7620.
“There was positive data released out of the United States
and that added positive sentiment to the market,” said a dealer
at Standard Bank, adding this positive sentiment might not last
and the rand might test the 7.90 over the next few days.
“The 7.75 level should be adequate support for dollar/rand
in the meantime and that’s where I’m sticking my stops.” the
dealer added.
New U.S. jobless claims fell to a near four-year low last
week, and U.S. housing starts also beat expectations in January.
Continued…
