{"id":16480,"date":"2012-11-07T20:39:27","date_gmt":"2012-11-07T18:39:27","guid":{"rendered":"http:\/\/www.myza.co.za\/11\/s-africas-rand-gives-back-gains-current-account-gap-weighs\/"},"modified":"2012-11-07T20:39:27","modified_gmt":"2012-11-07T18:39:27","slug":"s-africas-rand-gives-back-gains-current-account-gap-weighs","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-gives-back-gains-current-account-gap-weighs\/","title":{"rendered":"S.Africa’s rand gives back gains, current account gap weighs"},"content":{"rendered":"

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

JOHANNESBURG<\/span> Nov 7 (Reuters) – South Africa’s rand turned
\nweaker against the dollar on Wednesday as an early boost to
\nemerging markets from Barack Obama’s re-election as U.S.
\npresident waned and worries about the local economy persisted.<\/span><\/p>\n

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

Government bonds were largely steady, with yields anchored
\nby market expectations that a re-weighting of the consumer price
\nbasket could lead to higher inflation prints, denting the
\nchances of interest rate cuts.<\/p>\n

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

The rand earlier touched a session high of 8.59 to
\nthe greenback, its strongest level in three weeks, as Obama’s
\nvictory pointed to continued quantitative easing in the United
\nStates which should bolster high-yielding emerging currencies.<\/p>\n

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

But the rand retreated to 8.65 by 1603 GMT, down 0.3 percent
\nfrom Tuesday’s close at 8.6270.<\/p>\n

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

The currency was still dogged by negative international
\npublicity over wage strikes that have hit key mining output
\nsince August, Tradition Analytics said in a note. Foreign
\nportfolio flows into the debt market had also dwindled after two
\nsovereign credit rating downgrades by Moody’s and SP.<\/p>\n

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

“Due to a large current account deficit, waning inflows will
\ncontain the recovery of the rand going forward,” it added.<\/p>\n

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

South Africa has a yawning current account shortfall of 6.4
\npercent of gross domestic product, due to falling exports.<\/p>\n

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

On the fixed income market, the yield on the benchmark
\n14-year bond closed flat at 7.645 percent while that
\nfor the three-year issue rose half a basis point to 5.48
\npercent.<\/p>\n

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

Market watchers said a revamped price basket announced this
\nweek and effective early next year, coupled with above-inflation
\nwage settlements, would force an upward revision in inflation
\nexpectations. That is likely to reduce the chances of a rate cut
\nand keep bond yields supported.<\/p>\n

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

“Demand (for bonds) has also waned following WGBI and the
\nmarket is not really doing much at the moment,” a Johannesburg
\ntrader said. South Africa was included in Citigroup’s World
\nGovernment Bond Index from October, which initially boosted
\nappetite for local debt.<\/p>\n

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

Data from the JSE securities exchange shows foreign accounts
\nsold 2.1 billion rand ($242.73 million) worth of local bonds
\nlast week.
\n ($1 = 8.6518 South African rand)<\/p>\n

(Reporting by Stella Mapenzauswa; Editing by Catherine Evans)<\/p>\n

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

\n

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

JOHANNESBURG Nov 7 (Reuters) – South Africa’s rand turned weaker against the dollar on Wednesday as an early boost to emerging markets from Barack Obama’s re-election as U.S. president waned and worries about the local economy persisted. Government bonds were largely steady, with yields anchored by market expectations that a re-weighting of the consumer price […]<\/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-16480","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\/16480","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=16480"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/16480\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=16480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=16480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=16480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}