South Africa’s rand rebounds

Madiha Shakeel December 11, 2018

JOHANNESBURG: South Africa’s rand opened firmer on Tuesday, clawing back the previous session’s heavy losses, with investors buying the currency cheaper ahead of mining and manufacturing data and other economic data later in the day set to increase volatility.

* At 0645 GMT the rand was 0.28 percent firmer at 14.3400 per dollar, having tumbled overnight to a one-month low of 14.4800 as Brexit chaos drove down risk appetite late in the previous session.

* Risk demand on Monday was fragile as hopes of a clear resolution of the trade spat between the United States and China faded, and British Prime Minister Theresa May postponed a crucial vote on her Brexit deal.

* Early trade on Tuesday focused on technical positioning, with the rand’s failure to hold above the 14.50 support level luring some short buyers before the data deluge, starting with mining output and nonfarm jobs figures at 0930 GMT and manufacturing at 1100 GMT.

* Bonds started weaker, with the yield benchmark 2026 paper  up 3 basis points to 9.2 percent.

* Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.87 percent.

Copyright Reuters, 2018

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