Tuesday, 14 February 2012 23:20
JOHANNESBURG: South African government bonds and the rand weakened on Tuesday as rising global risk appetite dented demand for riskier emerging market assets, but bonds later recovered some losses after a strong debt auction.
The rand was last trading at 7.7550 to the dollar, one percent weaker than Monday's New York close of 7.6785. It hit a session low of 7.7617.
"There's some good demand for dollars towards 7.70 with daily resistance in the 7.75/78 area," said a local dealer, adding that while the rand could fall to 7.80, those levels would attract exporter dollar sales and cap sharper losses on the rand.
In the absence of market moving data locally, the rand took direction from abroad, with news that Moody's could cut the credit ratings of France and Austria, after it downgraded six other European nations, weighing on sentiment.
Euro zone finance ministers are expected to approve a new bailout deal for ...