JOHANNESBURG: South Africa's rand traded close to last Friday's 3-week highs against the dollar on Monday and should be supported by renewed appetite for riskier but higher-yielding assets in the wake of policy easing across developed markets.
Traders did not anticipate sharp market moves in response to first quarter domestic unemployment data due out at 0930 GMT, although it should confirm that business are reluctant to add new jobs while economic growth remains lacklustre.
The local unit was at 8.9328 per dollar by 0641 GMT, barely changed from Friday's close at 8.91.
"There's been a trend of rate cutting by developed markets across the globe that is driving money into higher yield again, which supports the rand," said Brigid Taylor, head of institutional trading at Nedbank.
The rand could rally all the way to 8.88/dollar during the course of the week, with 9.00 offering support at the other end of the range, Taylor added.
In fixed income, yields were also little changed from Friday's levels, with the benchmark issue due in 2026 and the 2015 paper each edging up a basis point to 6.685 percent and 5.08 percent respectively.
In addition to the unemployment data, the market should take direction from foreign currency reserves, as a well as mining and manufacturing production numbers out later in the week.
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