{"id":12797,"date":"2012-07-26T13:33:45","date_gmt":"2012-07-26T11:33:45","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/s-africas-rand-bolstered-by-stimulus-hopes\/"},"modified":"2012-07-26T13:33:45","modified_gmt":"2012-07-26T11:33:45","slug":"s-africas-rand-bolstered-by-stimulus-hopes","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-bolstered-by-stimulus-hopes\/","title":{"rendered":"S.Africa’s rand bolstered by stimulus hopes"},"content":{"rendered":"

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

JOHANNESBURG, July 26<\/span> (Reuters) – South Africa’s rand
\nsteadied against the dollar on Thursday after rallying 1.5
\npercent overnight due to strong demand for local bonds by
\nforeign accounts, and could rally further on hopes of additional
\nstimulus for struggling leading economies.<\/span><\/p>\n

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

The yield for the three-year paper was down two
\nbasis points at 5.37 percent in early trade and that for the
\n14-year issue fell 4.5 basis points to 7.29 percent.<\/p>\n

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

The rand briefly touched a session high of
\n8.3955\/dollar, close to Wednesday’s strongest level of 8.39, and
\nwas barely changed at 8.4000 by 0653 GMT.<\/p>\n

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

“The rand has come off its recent weakest levels on the back
\nof some bond purchases and the euro has also rallied a bit,” a
\nJohannesburg-based trader said.<\/p>\n

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

“You’re going to start to run into dollar support at these
\nlevels under 8.40, but certainly if bonds and equities carry on
\nperforming well then we should find some sellers again around
\n8.45\/46.”<\/p>\n

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

About 530 million rand flowed into the local bond market
\nfrom non-resident accounts on Wednesday, stock market data
\nshowed.<\/p>\n

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

The rand could also benefit from speculation that global
\nauthorities might provide additional and coordinated stimulus
\nmeasures to counter dismal global growth and the deepening euro
\nzone debt crisis, Absa Capital said in a note.<\/p>\n

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

“Given the concerns in many of the developed economies,
\nthere is also a growing argument that investors could flock to
\nemerging markets for safety and if such decoupling did occur,
\nthe rand is likely to be one of the biggest beneficiaries,” it
\nsaid.<\/p>\n

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

The rand tends to take the brunt of global market volatility
\nbecause South Africa’s markets are very liquid, making it easy
\nfor portfolio investment to flow in and out rapidly.<\/p>\n

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

The currency plunged to a three year low of 8.71\/dollar in
\nearly in June as investors fearing contagion from the euro zone
\ndumped emerging market assets traditionally perceived as
\ncarrying higher risk.<\/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":"

JOHANNESBURG, July 26 (Reuters) – South Africa’s rand steadied against the dollar on Thursday after rallying 1.5 percent overnight due to strong demand for local bonds by foreign accounts, and could rally further on hopes of additional stimulus for struggling leading economies. The yield for the three-year paper was down two basis points at 5.37 […]<\/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-12797","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\/12797","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=12797"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12797\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}