Rand steady as investors await global news

THE rand was steady against the dollar early today, moving in a narrow range as investors remained cautious about taking positions as they await the outcome of political domestic and international meetings later in the week.

The ANC is in the second day of a policy conference in Midrand aimed at clarifying its stance at issues such as mine nationalisation and monetary policy.

European leaders are due to hold a summit tomorrow and Friday to try to resolve the festering euro debt crisis.

The rand was steady at 8.4335 to the dollar at 8.35am. The local currency closed at 8.42 yesterday, failing to test 8.45 support which would open up weaker levels.

“We are back to around the week’s opening levels as participants await more clarity from both the ANC policy conference on the local front, as well as the EU summit on the international front,” Absa Capital said in a note to investors.

“In the short term, the rand remains vulnerable to adverse developments in sentiment, ei- ther locally or abroad.”

Dealers say a breach of the 8.35 level could spark further selling and push the rand to 8.40.

Yields on the benchmark 2015 bond and 2026 paper dipped just one basis point to 6.06 percent and 8.06 percent respectively, supported by a successful auction in the previous session. – Reuters