Rand weakens ahead of Eskom results
Realised volumes are likely to remain low for the remainder of the week as US markets close for Thanksgiving, Standard Bank’s Warrick Butler says
The rand was weaker on Thursday morning as investors await Eskom's interim results later in the day.
Markets will be watching the power utility's financial results amid concerns that the debt-ridden state-owned enterprise poses a threat to SA's credit rating.
Sasfin fixed-income trader Alvin Chawasema said, “We aren’t expecting trading conditions to change materially,” but that Eskom's financial results have the potential to “append the status quo.”
At 10am, the R2030 government bond was weaker with the yield rising 4.5 basis points to 9.215%. Bond yields move inversely to bond prices.
The rand weakened 0.18% to R14.7835/$, 0.25% to R16.2778/€ and 0.39% to R19.1311/£. The euro had firmed 0.12% to $1.1011.
Standard Bank currency trader Warrick Butler said realised volumes would be likely to remain low for the remainder of the week as US markets close for Thanksgiving.
Gold was up 0.24% to $1,457.71/oz while platinum lost 0.26% to $898.82.