South Africa's rand dips on stronger dollar, trading thin - CNBC Africa

South Africa's rand dips on stronger dollar, trading thin

Southern Africa

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South Africa's rand breached the psychologically important 10-to-the-dollar level on
Wednesday as a stronger greenback weakened global currencies while market liquidity
remained thin.

The rand was at 10.0350 to the dollar at 0635 GMT, nearly 0.5 percent weaker than its
close in New York on Tuesday.

U.S. data on Tuesday signalling the recovery of the world's largest economy was gaining
momentum boosted the dollar ahead of the highly anticipated release of non-farm payrolls
on Friday.

U.S. home prices posted their biggest annual increase in more than seven years in May and
factory orders rose 2.1 percent in the same month.

"We've got a firmer dollar across the board this morning," said Absa Capital forex trader Duncan
Howes.

"We expect the rand to stay under pressure on the back of a firmer dollar."

Howes added that liquidity remained light as volatility kept market players on the sidelines.

Government bonds were mixed, with the yield on the 2026 issue up 6 basis points to 7.905 percent
and that on the 2015 paper down 0.5 basis points at 6.075 percent.

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