OWN CORRESPONDENT, Johannesburg | Monday 5.30pm.
THE Rand softened in the face of dollar strength but bonds recovered after a sell-off in the wake of strong growth figures for the fourth quarter.
The Rand last bid at 6.33 to the dollar, at the weak end of the day’s range, with dollar strength, especially against the euro, seen the major driver.
Most traders are looking for the currency to firm slightly in the days ahead.
Fourth quarter GDP figures, released earlier, showed the economy expanded 3.6% seasonally adjusted and annualised, from 3.2% in the third quarter.
The numbers prompted a quick sell-off in bonds with investors saying the prospects for further rate cuts were not good given the strong growth.
Stocks closed at their lowest level since December 9 as global markets weakened on jitters prompted by US interest rate concerns.
Dealers see a further drop on Tuesday, perhaps below the psychologically important 8000 level, but say the bright domestic economic outlook means the bottom of the current correction is near.
The all-share index closed down from 1.59% to 8031.8, the lowest close since December 9. –Reuters