{"id":6332,"date":"2011-12-22T00:39:15","date_gmt":"2011-12-21T22:39:15","guid":{"rendered":"http:\/\/www.myza.co.za\/12\/s-africas-rand-turns-weaker-but-bonds-hold-gains\/"},"modified":"2011-12-22T00:39:15","modified_gmt":"2011-12-21T22:39:15","slug":"s-africas-rand-turns-weaker-but-bonds-hold-gains","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-rand-turns-weaker-but-bonds-hold-gains\/","title":{"rendered":"S.Africa&#8217;s rand turns weaker but bonds hold gains"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Rand retreats in line with euro<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Yields down as bonds hold to gains<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG<\/span> Dec 21 (Reuters) &#8211; The rand reversed its<br \/>\nearlier gains against the dollar on Wednesday as wary investors<br \/>\nlost their appetite for risky assets on nagging worries about<br \/>\ndebt constraints in the euro zone, South Africa&#8217;s main trading<br \/>\npartner.<\/p>\n<p><span><\/span><\/p>\n<p>Government bonds however closed firmer and yields fell, with<br \/>\nthe bond exchange&#8217;s yearend shorter trading hours shielding the<br \/>\nlocal debt market from the currency&#8217;s losses.<\/p>\n<p><span><\/span><\/p>\n<p>The rand gained as much as 1.6 percent against the<br \/>\ndollar earlier in the session to a seven-day high of 8.07 but<br \/>\nwiped out those gains to trade at 8.25 by 1550 GMT, down 0.62<br \/>\npercent from Tuesday&#8217;s close at 8.1990.<\/p>\n<p><span><\/span><\/p>\n<p>The move mirrored that of the euro, which fell against the<br \/>\ndollar after larger-than-expected bank demand for cheap European<br \/>\nCentral Bank loans failed to convince investors the move would<br \/>\nease Europe&#8217;s deep-seated debt problems.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;It was a knee-jerk reaction that dollar\/rand rebounded<br \/>\nafter euro\/dollar plunged &#8230; As long as the euro is under<br \/>\nselling pressure among the thin markets, dollar\/rand could test<br \/>\nintraday highs,&#8221; said Anisha Arora, an emerging market analyst<br \/>\nat 4CAST.<\/p>\n<p><span><\/span><\/p>\n<p>Bonds did not feel the impact of the rand sell-off on<br \/>\nWednesday, with the heavily-traded four-year and<br \/>\n15-year bonds holding firm until the market closed at<br \/>\nmidday Johannesburg time.<\/p>\n<p><span><\/span><\/p>\n<p>The yield on the four-year issue was down 10 basis points on<br \/>\nthe day at 6.79 percent while that for the longer-dated paper<br \/>\ndropped eight basis points to 8.555 percent.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;My expectation will be that bonds will open up modestly<br \/>\nweaker tomorrow given that the currency has given up some of its<br \/>\ngains,&#8221; Absa Capital bond trader Daniel Sabiston said.\t<\/p>\n<p> (Reporting by Stella Mapenzauswa; editing by Ron Askew)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2011 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Rand retreats in line with euro * Yields down as bonds hold to gains JOHANNESBURG Dec 21 (Reuters) &#8211; The rand reversed its earlier gains against the dollar on Wednesday as wary investors lost their appetite for risky assets on nagging worries about debt constraints in the euro zone, South Africa&#8217;s main trading partner. 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