Rand recovers as Italian tension abates somewhat while global bond yields rise again
The rand was steady at firmer levels on Wednesday, and local bonds were mixed, with the euro gaining lost ground on the dollar as the Italian political crisis continued to loom large over market sentiment.This followed reassurances from the European Central Bank (ECB) that it would continue to wind down its bond-buying or stimulus programme.ECB officials said the central bank would in all likelihood announce a final decision on the matter next month, and that Italy should not count on the ECB’s help if it violated the EU’s budget rules, Dow Jones Newswires reported.The euro has been hammered by a stronger dollar over the past week amid concern that a populist government in Italy might consider exiting the currency union.Italy’s president, Sergio Mattarella, has yet to give approval for a new government following elections in which the two main populist parties — the Five Star Movement and the Northern League — won 50% of the vote."If a government can be formed that receives the stam...
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