Showing posts with label Rand Dollar. Show all posts
Showing posts with label Rand Dollar. Show all posts
Wednesday, August 10, 2011
Rand Slumps to the US $
Johannesburg - The rand was weaker in early trade on Wednesday, as investors remained skittish about the outlook for global growth and a bond auction later in the day kept pressure on longer dated fixed-income yields.
The rand was down more than 1% against the dollar, after a sharp spike on Tuesday when it traded at a year low of R7.50 before coming back to close at R7.1050.
Government bonds were under pressure from the weaker currency and an auction later in the session where Treasury has offered R2.1bn worth of 2031 and 2036 government paper.
The auction, usually held every Tuesday, was delayed by a national holiday on August 9. Results of the sale are due after 09:00 GMT when the auction closes.
The yield on the four year note was only one basis point higher at 7.14%, while the longer 2026 bond gave up 7.5 basis points to 8.36%. It fell 13.5 basis points earlier in the session.
"The FOMC said they will keep rates on hold at least until 2013 that's the one reason why the front end is being bought. The expectation is that rates in South Africa will stay flat as well," said Marten Banninga, a bond trader at World Wide Capital Securities in Johannesburg.
The coming auction was also putting pressure on longer yields, he said.
The yield spread between the 2015 and 2026 bonds hit a record high of 123 basis points.
Dealers say the market is very volatile but fair prices should be set during the session.
The rand traded 0.51% weaker by 07:07 GMT, after hitting R7.1890 in the session so far. Analysts do expect a further recovery in the rand from the R7.50 level.
"Early trading action this morning is taking the pair higher and it is quite conceivable that this move heads back up toward the R7.20/2500 area before reversing proper," Tradition Analytics said in a note.
Wednesday, May 11, 2011
Dollar Demand Knocks Rand
Dollar demand knocks rand
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Government bonds also had a tough session, frustrated by the weak rand and local selling at the front end of the curve. Stocks closed slightly lower, tracking US markets weaker after the release of trade deficit figures for the United States.
South African shares took heart from better-than-expected manufacturing numbers earlier in the session but some analysts said the data showed the sector was in a hesitant recovery and the outlook for the rest of the year was uncertain.
The rand currency fell to 6.855 against the dollar, its weakest in three weeks, from Tuesday's New York close of 6.7353.
"We have seen some oil importers today so the rand market was a little bit short of dollars and we're now seeing the results of that," said David Gracey, trader as Investec.
He said the rand was also reacting to a slight sell-off in the gold price, softer US equity markets and the weaker euro.
The volatile rand is retracing a three-year high of 6.5410 touched early last week, giving up 3% to current levels.
Government bonds also had a tough session, frustrated by the weak rand and local selling at the front end of the curve. Stocks closed slightly lower, tracking US markets weaker after the release of trade deficit figures for the United States.
South African shares took heart from better-than-expected manufacturing numbers earlier in the session but some analysts said the data showed the sector was in a hesitant recovery and the outlook for the rest of the year was uncertain.
The rand currency fell to 6.855 against the dollar, its weakest in three weeks, from Tuesday's New York close of 6.7353.
"We have seen some oil importers today so the rand market was a little bit short of dollars and we're now seeing the results of that," said David Gracey, trader as Investec.
He said the rand was also reacting to a slight sell-off in the gold price, softer US equity markets and the weaker euro.
The volatile rand is retracing a three-year high of 6.5410 touched early last week, giving up 3% to current levels.
Monday, September 28, 2009
Rand / Dollar 25 Year Trend
The chart above represents the 25 year trend of the Rand / Dollar Exchange Rate. From the end 1987 the Rand has depreciated steadily against the US. The sudden strengthing in the Rand was brought about by the global credit crunch and I think the long term trend will continue. It is a very good time to take your Rands offshore.
Wednesday, October 22, 2008
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