Rand stretches gains, bonds firmer

Agri­cul­tural fu­tures

The Star Late Edition - - MARKETS - Reuters

THE RAND ex­tended gains against the dol­lar yes­ter­day and gov­ern­ment bonds firmed, helped by slow­ing in­fla­tion and the gov­ern­ment’s re­jec­tion of na­tion­al­i­sa­tion of mines and banks.

At 5pm, the rand had gained 0.79 per­cent to R13.1715 to the dol­lar, its firmest since March 31, com­pared to a close of R13.2775 overnight in New York.

In fixed in­come, the yield for the bench­mark gov­ern­ment bond due in 2026 fell.

“The in­vest­ment com­mu­nity’s view is that in­fla­tion is fall­ing sharper than what the Re­serve Bank cur­rently an­tic­i­pates and the coun­try’s real rate story later this year is go­ing to look a lot more com­pelling than what it does at the mo­ment, there­fore the sup­port for gov­ern­ment bonds re­mains,” said BNP Paribas Cadiz Se­cu­ri­ties an­a­lyst, Jeffrey Schultz. SOYA BEANS for de­liv­ery in July gained 0.4 per­cent to $9.64 a bushel (R4 709 a ton) on the Chicago Board of Trade yes­ter­day af­ter­noon.

China’s de­ci­sion to cut value added tax for some agri­cul­tural goods from July 1 “ex­pected to sup­port soya bean im­ports”, CRM Agri-Com­modi­ties, a con­sul­tant in New­mar­ket, Eng­land, said in a re­port.

Maize for July rose 0.5 per­cent to $3.70 a bushel, while wheat was up 0.4 per­cent at $4.36 a bushel. – Bloomberg

Yes­ter­day’s so­lu­tion:

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.