{"id":13391,"date":"2012-08-11T02:20:13","date_gmt":"2012-08-11T00:20:13","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/s-africas-rand-near-13-week-high-could-lose-steam\/"},"modified":"2012-08-11T02:20:13","modified_gmt":"2012-08-11T00:20:13","slug":"s-africas-rand-near-13-week-high-could-lose-steam","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-near-13-week-high-could-lose-steam\/","title":{"rendered":"S.Africa’s rand near 13-week high, could lose steam"},"content":{"rendered":"

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

* Lingering EM euphoria supports rand<\/span><\/p>\n

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

* Bonds sold off in profit-taking<\/p>\n

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

JOHANNESBURG<\/span> Aug 10 (Reuters) – South Africa’s rand hovered
\nnear the previous day’s 13-week high against the dollar on
\nFriday, riding on the remnants of emerging market euphoria over
\nexpectations of further policy easing in leading economies.<\/p>\n

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

Government bonds weakened, with yields continuing their
\nrecent gradual trend higher after hitting historical lows in
\nJuly when dovish central bank comments on the domestic economic
\nand inflation outlook led the market to price in another rate
\ncut.<\/p>\n

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

The local currency clawed its way back from a
\nsession low of 8.17 against the greenback to 8.0850 by 1609 GMT,
\njust 0.1 percent softer than Thursday’s close at 8.08.<\/p>\n

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

But the rand, which has come back significantly from a
\nthree-year low of 8.71 in June, could run out of steam alongside
\nother emerging market currencies recently buoyed by
\nexpectations of further stimulus measures from the European
\nCentral Bank and the U.S. Federal Reserve.<\/p>\n

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

“With nothing on the calendar in the way of likely global
\npolicy action for the month of August, investors may well decide
\nto book profits on long EM currency positions, which could
\ncreate a short term correction,” said Roderick Ngotho, EMEA
\nforex strategist at RBS.<\/p>\n

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

Government bonds sold off slightly on Friday, and the yield
\non the three-year benchmark ended the day three basis
\npoints higher at 5.635 percent while that for the longer-dated
\n14-year paper rose 2.5 basis points to 7.41 percent.<\/p>\n

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

“I think this is a healthy profit taking after the strong
\nrally we had in the last two months,” said Di Luo, an interest
\nrate strategist at HSBC in London.<\/p>\n

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

Local bonds hit record lows last month after the Reserve
\nBank unexpectedly cut rates after keeping them on hold for 19
\nmonths and left the door open for further loosening as economic
\ngrowth remains lacklustre and inflation is seen sustainably
\nwithin a 3-6 percent target band.<\/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":"

* Lingering EM euphoria supports rand * Bonds sold off in profit-taking JOHANNESBURG Aug 10 (Reuters) – South Africa’s rand hovered near the previous day’s 13-week high against the dollar on Friday, riding on the remnants of emerging market euphoria over expectations of further policy easing in leading economies. Government bonds weakened, with yields continuing […]<\/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-13391","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\/13391","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=13391"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13391\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}