MARKET CLOSE

THE RAND firmed against the dollar yesterday for the first day in four as it retreated from support levels, and bonds ended the week stronger in thin trade pending inflation data and the national Budget announcement next week.

The rand gained nearly 1 percent against the dollar in yesterday’s session, reversing the week’s weakening trend as stop losses were triggered overnight.

“There was big (dollar) resistance yesterday at the 7.87/88 level. We saw some exporters selling and I think week-long stops were triggered in New York time late last night below 7.80, and now we’re back at support again,” a Johannesburg dealer said.

The rand strengthened to 7.7160 after closing at 7.7755 in New York trade on Thursday.

Adding support to the local unit were investors’ hopes that the Greece bail-out package may be secured on Monday, bringing slight optimism to global markets, which lifted risky assets.

The local bond market was thin on trade yesterday, but prices followed the rand firmer.

Dealers said they were waiting for Monday’s Greece decision, then domestic inflation before the year’s Budget policy statement is presented to Parliament on Tuesday.

Economists are expecting a wider budget shortfall than the government had previously forecast.

The yield on the 2015 bond last traded six basis points lower at 6.60 percent in the session, while the 2026 issue dropped 7.5 basis points to 8.23 percent. – Reuters