JOHANNESBURG (Reuters) - The rand extended gains to end the week below the 8.80 resistance level on Friday, inspired by stronger-than-expected U.S. data that boosted prospects for global economic growth.
South Africa's currency strengthened to a month high of 8.7701 in the session, compared with a close of 8.78 in New York on Thursday.
Dealers say the break of 8.80 resistance, which had confined the local unit in a 20 cent range since the start of the month, propelled rand bulls further.
The world's biggest economy reported a decline in jobless claims on Thursday, cheering global markets and pushing the rand to a stronger open on Friday.
By 1540 GMT, the local unit had come off the session's best to trade at 8.81 to the dollar.
"We had the downward movement of dollar/rand but now it's more consolidating," said Murat Toprak EMEA forex strategist for HSBC.
"We are constructive on the rand; we think dollar/rand will continue to go lower. The stabilisation of the social situation and some improvement, not fantastic, but better, economic data very recently justifies a bit stronger rand," Toprak said.
Retail sales data earlier this week showed consumers continued to spend into the end of last year, propping economic growth as they did in 2011, while months-long labour strikes that hit mines and farms ended.
Government bonds tracked the rand rally in a quiet session where some market players were unconvinced by the rand's strong move.
"There's a bias that the rand should be trading slightly higher than it is. When that talk comes around we see big offshore buying that puts a cap on where the rand can go," a local bond dealer said.
Yields came down four basis points on the 2026 issue to 7.295 percent and one percent to 5.35 percent on the 2015 note.
"On a fundamental basis yields have rallied far past their fair value," the dealer said.
Source: http://news.yahoo.com/africas-rand-ends-month-high-vs-dollar-boosts-095502965--finance.html
Heptathlon London 2012 shot put London 2012 Track And Field Jordyn Wieber michael phelps Kerri Strug Ledecky
No comments:
Post a Comment