{"id":11702,"date":"2012-06-21T11:37:50","date_gmt":"2012-06-21T09:37:50","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/s-africa-rand-drops-after-fed-stimulus-disappoints\/"},"modified":"2012-06-21T11:37:50","modified_gmt":"2012-06-21T09:37:50","slug":"s-africa-rand-drops-after-fed-stimulus-disappoints","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-rand-drops-after-fed-stimulus-disappoints\/","title":{"rendered":"S.Africa rand drops after Fed stimulus disappoints"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Rand tracks struggling euro<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Q1 current account data to show widening deficit<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, June 21<\/span> (Reuters) &#8211; South Africa&#8217;s rand<br \/>\nweakened against the dollar on Thursday, mirroring a dip in the<br \/>\neuro, after the U.S. Federal Reserve disappointed markets by<br \/>\nfailing to introduce an aggressive bond-buying programme to<br \/>\nsupport a stalling economic recovery.<\/p>\n<p><span><\/span><\/p>\n<p>The rand weakened almost half a percent against the<br \/>\ngreenback to 8.22 by 0613 GMT, from Wednesday&#8217;s New York close<br \/>\nof 8.1805. The rand often tracks the euro, the currency of its<br \/>\nlargest trading partner.<\/p>\n<p><span><\/span><\/p>\n<p>Rather than announce &#8220;QE3&#8221; late on Wednesday, the Fed<br \/>\nexpanded its &#8220;Operation Twist&#8221; by $267 billion, meaning it will<br \/>\nsell that amount of short-term securities to buy longer-term<br \/>\nones to keep long-term borrowing costs down.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The Fed&#8217;s decision to extend Operation Twist and to<br \/>\nimplement nothing more has left EUR\/USD struggling to break<br \/>\n1.2700 and USD\/ZAR languishing at 8.20,&#8221; Rand Merchant Bank said<br \/>\nin a note.<\/p>\n<p><span><\/span><\/p>\n<p>South African bond yields dropped to all-time lows this week<br \/>\nafter consumer inflation braked to 5.7 percent in May, back into<br \/>\nthe central bank&#8217;s 3-6 target range and giving policymakers more<br \/>\nscope to cut already historically low rates if they see fit.<\/p>\n<p><span><\/span><\/p>\n<p>On Thursday, the yield on the three year bond rose<br \/>\n1.5 basis points to 5.985 percent and that on the 14-year paper<br \/>\n rose 2.5 basis points to 7.985 percent.<\/p>\n<p><span><\/span><\/p>\n<p>The South African Reserve Bank is due to release its Q1<br \/>\ncurrent account figures on Thursday. Economists are forecasting<br \/>\nthat the deficit will have swollen to 4.5 percent of GDP from<br \/>\n3.6 percent in the previous quarter.<\/p>\n<p> (Reporting by Vuyani Ndaba; Editing by Ed Cropley)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Rand tracks struggling euro * Q1 current account data to show widening deficit JOHANNESBURG, June 21 (Reuters) &#8211; South Africa&#8217;s rand weakened against the dollar on Thursday, mirroring a dip in the euro, after the U.S. Federal Reserve disappointed markets by failing to introduce an aggressive bond-buying programme to support a stalling economic recovery. 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