JOHANNESBURG: The South African rand steadied against the dollar in early Thursday trade after being buffeted to fresh four year lows overnight, but the risk for further losses remains as recent data points to anaemic economic growth this year.
The currency was at 9.2449 to the greenback by 0605 GMT, little changed from 9.25 at Wednesday's close.
Selling pressure after softer-than-expected retail sales data pushed the rand to 9.2750 against the dollar the previous day, its weakest level since April 2009, with investors seeing lower returns from South African assets as the economy struggles.
Ratings agencies have downgraded the country in recent months and Standard & Poor's affirmed South Africa's BBB sovereign grade with a negative outlook on Wednesday.
"The rand remains under pressure from a combination of a strong dollar and negative local sentiment," RMB said in a note.
"What is clear is that the market is in a very negative frame of mind - and there are enough real reasons to worry."
Manufacturing output data due out at 1100 GMT could drive the rand lower if it also surprises to the downside.
Government bonds also edged down in early trade, with the yield on the 2026 benchmark bond ticking up half a basis point to 7.46 percent compared with Wednesday's close.
The shorter-dated bond due in 2015 added 1.5 basis points to 5.425 percent.
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