{"id":12685,"date":"2012-07-24T01:19:41","date_gmt":"2012-07-23T23:19:41","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/rand-drops-over-2-pct-vs-dollar-bonds-weak\/"},"modified":"2012-07-24T01:19:41","modified_gmt":"2012-07-23T23:19:41","slug":"rand-drops-over-2-pct-vs-dollar-bonds-weak","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/rand-drops-over-2-pct-vs-dollar-bonds-weak\/","title":{"rendered":"Rand drops over 2 pct vs dollar, bonds weak"},"content":{"rendered":"

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

* Rand falls vs dollar in global risk sell-off<\/span><\/p>\n

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

* Yields rise but foreigners still buying local bonds<\/p>\n

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

JOHANNESBURG, July 23<\/span> (Reuters) – The rand fell over two
\npercent against the dollar on Monday, hit by euro debt troubles
\nand a bleak domestic outlook that saw the unit lose the most in
\na basket of its emerging market peers.<\/p>\n

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

Bond yields rose in the session following a sharp rally
\ndriven by a domestic rate cut last week. The central bank
\nsurprising cut interest rates to 5 percent on Thursday, a move
\nthat is adding pressure to the currency as it points to
\nincreased concerns about economic growth.<\/p>\n

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

The rand dropped 2.3 percent to 8.4810\/dollar in
\nafternoon trade on Thursday, its biggest daily fall since June
\n21 when it lost over 2.4 percent and off a close of 8.29 in New
\nYork on Friday.<\/p>\n

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

“We have big ‘risk off’ with equity markets plunging and its
\nnot surprising to see such a big move. That the central bank cut
\ninterest rates despite the fact that the rand was already weak
\nsignals that their priority is growth,” said Murat Toprak,
\nemerging market strategist at HSBC.<\/p>\n

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

Earlier in the session the bank again reiterated its
\nconcerns about the impact that Europe was having on local
\nexports while Finance Minister Pravin Gordhan said economic
\ngrowth would likely miss the 2.7 percent government
\ntarget.<\/p>\n

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

Gordhan welcomed the interest rate cut, saying it showed the
\nbank was also focused on employment creation and economic
\ngrowth.<\/p>\n

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

Bond yields rose as Spanish borrowing costs soared and
\nfuelled risk aversion globally. The yield on the 2021 issue
\n climbed 12 basis points to 6.625 percent and 2026 bond
\n rose 16 basis points to 7.355 percent.<\/p>\n

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

“We’ve had an incredibly hard rally. We’ve seen a massive
\namount of investment come in and you’re probably getting
\n-particularly your leverage, short-term investors- starting to
\ntake a profit and the weaker currency is a catalyst for that at
\nthe moment,” said Vivienne Taberer, fixed income portfolio
\nmanager at Investec.<\/p>\n

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

Offshore accounts bought 6.2 billion rand worth of
\ngovernment bonds last week and dealers see the broader trend
\ncontinuing in the coming months as investors seek out higher
\nreturns from emerging markets. <\/p>\n

(Reporting by Xola Potelwa; editing by Ron Askew)<\/p>\n

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

\n

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

* Rand falls vs dollar in global risk sell-off * Yields rise but foreigners still buying local bonds JOHANNESBURG, July 23 (Reuters) – The rand fell over two percent against the dollar on Monday, hit by euro debt troubles and a bleak domestic outlook that saw the unit lose the most in a basket of […]<\/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-12685","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\/12685","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=12685"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12685\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}