Johannesburg | Friday
SOUTH Africa’s rand slipped to a fresh record low of 9.03 versus the dollar on Friday, pressured by offshore selling which traders attributed to comments by central bank governor Tito Mboweni.
The Business Day newspaper said Mboweni had suggested measures to stamp out the use of domestic finance by speculators to call the rand short.
”Financial institutions which provide the rand have to be able to show me proof that all their trades are genuine, economic trades,” Mboweni told business leaders in Cape Town on Thursday.
A currency dealer said of Mboweni’s statement: ”This morning we have seen guys from London selling the rand. People will react negatively to that statement, they are going to test him to see if he will do anything.”
In Cape Town, Mboweni said that he would not comment further on the issue.
The rand closed at 8,977 to the dollar on Thursday after earlier breaking through the 9,0 psychological barrier. It was seen finding some support at 9,05.
Bonds were relatively steady, with the yield on the R150 due 2005 bid at 9,95% from 9,94% on Thursday. The longer-dated R153 was bid at 10,69% from 10,63%. – Reuters