{"id":12723,"date":"2012-07-25T01:29:47","date_gmt":"2012-07-24T23:29:47","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/s-africas-rand-on-backfoot-bonds-also-retreat\/"},"modified":"2012-07-25T01:29:47","modified_gmt":"2012-07-24T23:29:47","slug":"s-africas-rand-on-backfoot-bonds-also-retreat","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-on-backfoot-bonds-also-retreat\/","title":{"rendered":"S.Africa’s rand on backfoot, bonds also retreat"},"content":{"rendered":"

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

JOHANNESBURG, July 24<\/span> (Reuters) – South Africa’s rand fell
\nto its weakest against the dollar in more than seven weeks on
\nTuesday and could attempt early June’s three-year lows in
\nnervous trade as a grim outlook for the euro zone keeps
\ninvestors largely averse to risky assets.<\/span><\/p>\n

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

Yields rose as government bonds pulled back from recent
\nhighs which had left them looking overbought, although local
\ndebt still holds long-term appeal for investors looking for
\nbetter returns than the near-zero rates on offer in developed
\ncountries.<\/p>\n

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

With little news on the local front to drive the currency,
\nplayers were focused mainly on global developments while pricing
\nin the chance of further monetary easing after last week’s
\nunexpected rate cut as current growth forecasts look
\nunattainable.<\/p>\n

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

The rand hit a session low of 8.5335 to the
\ngreenback, the softest it has been since June 4, and was 0.61
\npercent weaker at 8.5150 by 1540 GMT compared with Monday’s
\nclose at 8.4630.<\/p>\n

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

“There’s not much happening domestically to impact the rand,
\nit has followed general EMEA currency moves which have all been
\nrelatively small compared to yesterday,” said Christopher
\nShiells, emerging market analyst at Informa Global Markets.<\/p>\n

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

“We should see a risk-off grind lower as euro zone stresses
\nbuild.”<\/p>\n

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

The rand took its cue from the euro, which fell against the
\ndollar and yen as weak euro zone data and a ratings watch on the
\nregion’s strongest economies further dimmed the outlook for the
\ncommon currency.<\/p>\n

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

Europe absorbs about 25 percent of South Africa’s exports,
\nand as a result the rand tends to closely track the euro.<\/p>\n

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

“The pressure stays on. I think (dollar) bulls still have a
\ncase to look for this year’s highs at 8.70 for dollar\/rand. Euro
\nzone bond spreads have widened significantly and there is again
\na feel of disorderly markets,” said Gabor Ambrus, emerging
\nmarket analyst at 4Cast.<\/p>\n

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

Government bonds came under selling pressure and yields
\nrecovered after hitting record lows in the wake of last week’s
\nsurprise 50 basis point cut to 5.0 percent in the benchmark repo
\nrate.<\/p>\n

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

The three-year benchmark was yielding 5.485
\npercent at Tuesday’s close, up 4.5 basis points on the day, and
\nthe 14-year paper jumped 12.5 basis points to 7.48
\npercent.<\/p>\n

(Reporting by Stella Mapenzauswa; 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":"

JOHANNESBURG, July 24 (Reuters) – South Africa’s rand fell to its weakest against the dollar in more than seven weeks on Tuesday and could attempt early June’s three-year lows in nervous trade as a grim outlook for the euro zone keeps investors largely averse to risky assets. Yields rose as government bonds pulled back from […]<\/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-12723","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\/12723","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=12723"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12723\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}