South Africa's rand firms, focus on US stimulus plans
- The rand has recently mainly moved on global factors including the US stimulus plan, shrugging off a run of poor domestic data that points to lingering weakness in Africa's most industrialised economy.
JOHANNESBURG: South Africa's rand firmed early on Monday as hopes that a massive economic stimulus in the United States would be passed provided some support to markets, with traders expecting the currency to remain vulnerable to global risk-taking mood.
At 0630 GMT, the rand traded at 15.0850 versus the US dollar, 0.56% firmer than its close on Friday.
Analysts at Nedbank expected the currency to trade in a range of 14.9500 to 15.2500 in the session.
"Price action will likely remain skittish, as the rand is vulnerable in the short term," the analysts said in a note.
"Focus is on the potential US stimulus package, and any deviation from this could see the rand test the upper end of the ranges."
Investors did see some hope after US President Joe Biden's administration tried to head off Republican concerns that their $1.9 trillion pandemic relief proposal was too expensive with lawmakers from both parties saying they had agreed that getting the COVID-19 vaccine to Americans should be a priority.
The rand has recently mainly moved on global factors including the US stimulus plan, shrugging off a run of poor domestic data that points to lingering weakness in Africa's most industrialised economy.
In fixed income, the yield on the long-dated benchmark government bond due in 2030 flat at 8.775% in early deals.
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