Eskom’s lift­ing of emer­gency boost for rand

Weekend Argus (Saturday Edition) - - BUSINESS -

THE rand strength­ened against the dol­lar yes­ter­day, helped by the lift­ing of an emer­gency de­clared by power util­ity Eskom.

The rand was at 10.0850 to the dol­lar at 1458 GMT, up 0.4 per­cent from Thurs­day’s New York close.

Eskom said late on Thurs­day it would lift an emer­gency it had de­clared on Tues­day as the sys­tem was now sta­ble.

Eskom, which pro­vides 95 per­cent of South Africa’s elec­tric­ity, last de­clared an emer­gency in 2008 when it was forced to in­tro­duce rolling black­outs, cost­ing the econ­omy bil­lions of rands in lost out­put.

A stronger euro and am­ple dol­lar liq­uid­ity also sup­ported the rand yes­ter­day.

“The com­bi­na­tion of the var­i­ous fac­tors have given some sup­port to the rand,” said Ned­bank FX trader Wil­liam van Rijn. “We’ve seen fairly de­cent amounts of dol­lars en­ter the mar­ket, hence the rand is en­joy­ing a some­what stronger ses­sion over­all.”

Gov­ern­ment bonds were firmer, with the yield on the 2026 gov­ern­ment bond 5 ba­sis points lower at 8.185 per­cent and that on the 2015 pa­per down 1 ba­sis point at 6.11 per­cent. – Reuters

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