* Rand could inch toward 8.20/dollar
* Bonds firm slightly, stock futures down
* CPI on Wednesday, seen at 6.2 pct y/y
JOHANNESBURG, Dec 12 (Reuters) – South Africa’s rand
started weaker against the dollar on Monday and was seen under
pressure as the market was disappointed by Friday’s European
Union summit, which did not offer a concrete deal to end the
euro zone debt crisis.
Except for Britain, the EU states decided at a summit to
pursue stricter budget rules for the single currency area and to
provide up to 200 billion euros in bilateral loans to the
International Monetary Fund to help tackle the crisis.
The rand was trading at 8.13 against the dollar at
0640 GMT, 0.56 percent weaker than Friday’s New York close of
8.0850.
“There are some aspects of the EU stance that are ok, but
overall the market is disappointed with the deal,” said Warrick
Butler, a dealer at Standard Bank.
“We might have a bit of a pullback on the rand up to that
8.20 level. The 8.18/20 level is a pivotal level but I don’t
think the pullback will be too extended,” he said, adding the
exporter sellers of dollar are likely to come in around 8.18/20.
Liquidity conditions are becoming thinner as holidays get
underway domestically, so moves are likely to be exaggerated.
Continued…
