JOHANNESBURG: The rand was trading around a two-week high early on Friday and government bonds were firm as risk appetite continued after a liquidity injection in global markets earlier this week, and as importer dollar-buying eased towards year-end.
The rand was 0.2 percent firmer at 8.07 against the dollar at 0620 GMT, compared with a close of 8.0855 in the New York market on Thursday.
Domestic assets have been trading on global headlines in recent weeks as thin liquidity exaggerates moves. Dealers are looking to US non-farm payrolls and unemployment data later in the session to provide direction.
Better-than-expected numbers are seen boosting sentiment and furthering the rand's gains on the day.
"The rand's short-term strengthening bias remains firmly in place. In fact, barring a sharply weaker-than-expected result from the employment data, the effects of the injection of liquidity into the global financial system could keep the mood positive and the rand on the front foot into next week," Standard Bank said in a note.
Yields on government debt fell, dropping 3.5 basis points to 6.725 percent on the 2015 bond and 8.425 percent on the 2026 issue.
New vehicle sales numbers, expected at 0900 GMT, are likely to show continued but slower growth in November as the sales slow towards the end of the year. They are unlikely to move the market as the global environment dominates.
The government is selling inflation-linked paper at auction at 0900 GMT. The bonds are seeing increased demand as with the rise in inflation.
Comments
Comments are closed for this article.