Rand re­treats

The Star Early Edition - - BUSINESS REPORT -

THE RAND back­tracked against the dol­lar yes­ter­day as for­ward mo­men­tum faded in the face of tech­ni­cal re­sis­tance lev­els and a lack of lo­cal data re­leases to drive sen­ti­ment.

At 5pm, the rand was bid at R12.9643 to the dol­lar, 1.44c softer than at the same time on Fri­day.

The rand has strug­gled to break through tech­ni­cal re­sis­tance around the 12.85 mark de­spite po­lit­i­cal un­cer­tainty in the US drag­ging the green­back to 13-month lows and buoy­ing de­mand for emerg­ing mar­ket as­sets.

A sur­prise rate cut by the South African Re­serve Bank last week had lit­tle ef­fect on the cur­rency and with only June pro­ducer in­fla­tion due later in the week, traders said they ex­pected lim­ited move­ments on the cur­rency in ei­ther di­rec­tion.

“Flows were non-ex­is­tent last week. No one is do­ing any­thing other than what is nec­es­sary. The tech­ni­cal pic­ture re­mains un­changed with lower highs and higher lows con­tin­u­ing to cause a con­ver­gence in price ac­tion,” said trader at Stan­dard Bank, War­rick But­ler.

Govern­ment bonds were weaker, with the yield on the bench­mark pa­per due in 2026 up.

Mean­while, stocks closed firmer, with mar­ket heavy­weight Naspers among the gain­ers af­ter it hit a new all-time high.

The bench­mark JSE Top40 in­dex firmed 0.54 per­cent to 48 058.35 points, while the all share in­dex gained 0.38 per­cent to close at 54 368.62 points.

Naspers firmed 1.92 per­cent to R2 860, a record high, as it mir­rored gains from China’s Ten­cent Holdings, in which it holds a ma­jor stake. Wool­worths climbed 2.14 per­cent to R63.84.

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