{"id":9010,"date":"2012-03-17T03:15:59","date_gmt":"2012-03-17T01:15:59","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/s-african-rand-recoups-losses-bond-yields-remain-high\/"},"modified":"2012-03-17T03:15:59","modified_gmt":"2012-03-17T01:15:59","slug":"s-african-rand-recoups-losses-bond-yields-remain-high","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-rand-recoups-losses-bond-yields-remain-high\/","title":{"rendered":"S.African rand recoups losses, bond yields remain high"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Rand strengthens on prospect of higher rates<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Emerging market bonds follow U.S Treasuries<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, March 16<\/span> (Reuters) &#8211; South Africa&#8217;s rand<br \/>\nstood its ground against the dollar on Friday boosted by the<br \/>\nwaning strength of the U.S. currency and after central bank<br \/>\nGovernor Gill Marcus hinted that higher interest rates may be in<br \/>\nstore.<\/p>\n<p><span><\/span><\/p>\n<p>The rand was trading at 7.5836 percent at 1635 GMT,<br \/>\n0.5 percent higher than Thursday&#8217;s close of 7.6265.<\/p>\n<p><span><\/span><\/p>\n<p>Marcus, in a statement on inflation released late on<br \/>\nThursday, sounded hawkish, saying inflation was now showing<br \/>\nsigns of demand-side pressure rather than only external factors.<br \/>\nAnalysts took that as a signal that interest rates could rise<br \/>\ngiven that previously Marcus had said the central bank would not<br \/>\nraise interest rates given the lack of demand pressures.<\/p>\n<p><span><\/span><\/p>\n<p>The upward inflation trajectory in recent months was mainly<br \/>\ndriven by only cost-push pressures such as food, fuel and<br \/>\nadministered prices.<\/p>\n<p><span><\/span><\/p>\n<p>With inflation expected to return back into the South<br \/>\nAfrican Reserve Bank&#8217;s 3-6 percent target by the final quarter<br \/>\nof this year, interest rate differentials will only get better<br \/>\nfor investors should the repo rate increase.<\/p>\n<p><span><\/span><\/p>\n<p>The South African Reserve Bank has kept the repo rate<br \/>\nunchanged at 5.5 percent since November 2010 after cutting it by<br \/>\n650 basis points from 2008 in an effort to stimulate a sluggish<br \/>\neconomic recovery.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;SARB Governor, who we felt alluded to the possibility of a<br \/>\nnormalization in South Africa&#8217;s historically low interest rate<br \/>\nenvironment, is also conducive to a firmer rand from a carry<br \/>\ntrade perspective,&#8221; said Absa Capital in a client note.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Rand strengthens on prospect of higher rates * Emerging market bonds follow U.S Treasuries JOHANNESBURG, March 16 (Reuters) &#8211; South Africa&#8217;s rand stood its ground against the dollar on Friday boosted by the waning strength of the U.S. currency and after central bank Governor Gill Marcus hinted that higher interest rates may be in [&hellip;]<\/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-9010","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\/9010","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=9010"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/9010\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=9010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=9010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=9010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}