JOHANNESBURG – South Africa’s rand eased back quickly Friday, ending a recent rally that’s lifted machine to three-week high as developed market currencies made a comeback in favour.
At 0650 GMT the rand was little changed, trading 0.04% weaker at 13.1550 per dollar compared to a close of 13.1500 overnight in Nyc.
Yield-hungry investors have ignored the political fallout as well as credit downgrades to “junk” to come President Jacob Zuma’s sudden firing of his finance minister in late March.
The local unit is facing selling pressure as dollar and euro back in favour with many risk concerns easing. Jobless claims and business activity data in the united states supported bets which the Fed will step-up rate hikes in 2010.
The rand is required to make another push at 13.00 level of resistance that can open the additional gains, traders said.
Stocks were set to open higher at 0900 GMT, while using the JSE securities exchange’s Top-40 futures index up 0.46%.
In fixed income, the yield on the benchmark government bond due in 2026 rose 1 basis points to 8.68%.