South Africa’s rand strengthened against the dollar on Thursday morning as the US unit slipped versus the euro, which was buoyed by the prospect of an end to German engineering union IG Metall’s strike.
The rand traded at R10.16/dlr at 07.55am, about six cents firmer on its opening levels.
But dealers said further gains could be capped by jittery importers who want to buy rand at these levels on fears that the volatile currency could give up some of its hefty gains.
It has clawed back about 15% of its value in 2002 against the dollar after sliding 37% last year.
Bond yields were stable and were seen consolidating with no domestic data this week to drive the market.
The yield on the key R150 bond was steady at 11.85%. The yield on the longer-dated R153 bond was also steady at 11.79%. – Reuters