{"id":10874,"date":"2012-05-30T10:22:46","date_gmt":"2012-05-30T08:22:46","guid":{"rendered":"http:\/\/www.myza.co.za\/05\/s-africas-rand-on-the-back-foot-euro-a-drag\/"},"modified":"2012-05-30T10:22:46","modified_gmt":"2012-05-30T08:22:46","slug":"s-africas-rand-on-the-back-foot-euro-a-drag","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-on-the-back-foot-euro-a-drag\/","title":{"rendered":"S. Africa’s rand on the back foot, euro a drag"},"content":{"rendered":"

\t\t<\/span><\/p>\n

* Rand to stay under pressure, in line with euro<\/span><\/p>\n

<\/span><\/p>\n

* Bond yields dip as domestic credit growth slows<\/p>\n

<\/span><\/p>\n

JOHANNESBURG<\/span> May 30 (Reuters) – South Africa’s rand eased
\nagainst the dollar in early Wednesday trade and is likely to
\nstay on the back foot as fears of contagion from Europe’s
\nliquidity problems dent investors’ appetite for higher yielding
\nbut riskier emerging market assets.<\/p>\n

<\/span><\/p>\n

Government bonds were up slightly in early trade, with
\nyields retreating after Reserve Bank data showed growth in
\nprivate sector credit demand braked more than expected in April.<\/p>\n

<\/span><\/p>\n

The rand was at 8.3422 against the dollar by 0645 GMT, down
\n0.27 percent from Tuesday’s close at 8.32.<\/p>\n

<\/span><\/p>\n

The ongoing financial troubles in the euro zone, with which
\nSouth Africa trades heavily, were likely to keep the rand under
\npressure, Tradition Analytics said.<\/p>\n

<\/span><\/p>\n

The euro fell to a two-year low, hurt by worries about
\nSpain’s soaring borrowing costs and expectations more money may
\nbe needed to support its ailing banks.<\/p>\n

<\/span><\/p>\n

“Europe is far from being fixed and until we see major signs
\nof either true reform or papered over reform the rand is likely
\nto struggle to make much headway,” Tradition Analytics said.<\/p>\n

<\/span><\/p>\n

On the debt market, the yield on the three year paper
\n shed half a basis point to 6.385 percent compared with
\nTuesday’s close while that for the 14-year issue was
\nflat at 8.345 percent.<\/p>\n

<\/span><\/p>\n

Yields pulled back slightly after Reserve Bank data showed
\ncredit demand by the private sector braked more than expected to
\n7.33 percent year-on-year in April compared with a 9.16 percent
\nrise in March, backing the argument for further interest rate
\ncuts to stimulate economic activity.<\/p>\n

<\/span><\/p>\n

Rates are already at 30-year lows after a monetary loosening
\ncycle that ended in November 2010.\t<\/p>\n

(Reporting by Stella Mapenzauswa; Editing by Ed Cropley)<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

* Rand to stay under pressure, in line with euro * Bond yields dip as domestic credit growth slows JOHANNESBURG May 30 (Reuters) – South Africa’s rand eased against the dollar in early Wednesday trade and is likely to stay on the back foot as fears of contagion from Europe’s liquidity problems dent investors’ appetite […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-10874","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=10874"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10874\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=10874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=10874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=10874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}