JOHANNESBURG: South Africa's rand traded within a narrow range against the dollar on Tuesday, with scope to weaken if an HSBC survey at 0715 GMT points to deteriorating confidence in the manufacturing sector.
At 0651 GMT the rand was at 10.6740 to the greenback, just 0.2 percent softer than Monday's close. Government debt edged higher, with the yield for paper maturing in 2026 dipping 2 basis points to 8.26 percent.
The yield on the shorter-dated 2015 bond eased to 6.64 percent.
Investor flows were starting to move back into risky assets after last week's sell-off and could nudge dollar/rand towards the 10.64 support level, Standard Bank trader Warrick Butler said.
However, geopolitical tensions in the Middle East, Russia and Iraq would make a recovery in the rand and other risky assets hard to sustain, Barclays Africa said in a note.
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