South African rand weakens as profit-taking weighs
- Government stimulus cheques helped US retail sales rebound sharply in January, while industrial output and producer prices data also provided robust upside surprises.
JOHANNESBURG: South Africa's rand weakened early on Thursday as a recent rise in US treasury yields and upbeat data in the world's largest economy sapped risk demand and prompted some profit-taking on the recent risk asset rally.
At 0650 GMT, the rand was 0.22% weaker at 14.6825 per dollar, pulling further away from a one-year best of 14.4050 touched earlier this week in a broad rally of emerging market currencies partly driven by an upswing in commodity prices.
Improved liquidity as China traders returned following holidays put further pressure on the rand.
"China is back in the mix following the week-long Chinese New Year shutdown, while the recent rise in US treasury yields and the expected 'faster-than-its-peers recovery' kept the rand subdued," said Bianca Botes of Peregrine Treasury Solutions.
Government stimulus cheques helped US retail sales rebound sharply in January, while industrial output and producer prices data also provided robust upside surprises.
Bonds were firmer, with the yield on the benchmark 2030 government issue down 3 basis points at 8.710%.
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