JOHANNESBURG: South Africa's rand was steady against the dollar early on Wednesday, moving in a narrow range as investors remained cautious about taking positions as they await the outcome of political domestic and international meetings later in the week.
The ruling ANC is in the second day of a policy conference aimed at clarifying its stance at issues such as mine nationalisation and monetary policy.
European leaders are due to hold a summit on Thursday and Friday to try and resolve the festering euro debt crisis.
The rand was steady at 8.4335 to the dollar at 0635 GMT. The local currency closed at 8.42 on Tuesday, failing to test 8.45 support which would open up weaker levels.
"We are back to around the week's opening levels as participants await more clarity from both the ANC policy conference on the local front, as well as the EU summit on the international front," Absa Capital said in a note to investors.
"In the short term, the rand remains vulnerable to adverse developments in sentiment, either locally or abroad, and as a consequence, rand bulls are likely to remain in the shadows for the time being."
Dealers say a breach of the 8.35 level could spark further selling and push the rand to 8.40.
Yields on the benchmark 2015 bond and 2026 paper dipped just one basis point to 6.06 percent and 8.06 percent respectively, supported by a successful auction in the previous session.
Treasury will announce issuance plans for next week, where one of its new 11-year or 2048 issues are likely to be on offer. The invitation for bids will be made at 0900 GMT on page
Power utility Eskom will sell 350 million rand worth of paper, between 2028 inflation-linked bond and a 2033 paper at 0900 GMT.
Comments
Comments are closed for this article.