Rand looks set to end the week with a gain
The local currency has drawn strength from the bond market, but offshore developments have been the prime driver
The rand held steady on Friday morning, but still set for a stronger close to a week dominated by offshore developments.The local currency has gained at least 1% against the dollar so far this week, on track to log its fourth weekly gain.TreasuryOne dealer Phillip Pearce said the currency’s gains were a function of SA’s bonds again becoming flavour of the moment, "as foreigners have a keen interest in the yield they offer", amid "considerable dollar weakness".The rand showed little reaction to European Central Bank president Mario Draghi’s remarks on Thursday, suggesting that the ECB could announce plans in October to taper its stimulus programme.As a result, the euro strengthened to the dollar, but some of the leading benchmark government bond yields dropped, suggesting a level of uncertainty in the market about the future monetary policy in the euro area.Pearce said tapering the stimulus programme in the eurozone would be rand-negative, as it meant monetary policy would tighten.At...
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