South Africa’s rand was steady at a year high against the dollar early on Monday and seen confined to a range with some importer interest seen below the 9,60 level, traders said.
At 0630 GMT, the rand was trading at 9,5925 per dollar — unchanged from Friday’s closing level in New York. It has gained about 24,8% against the dollar so far this year after sliding 37% in 2001.
Traders said they expected the rand to trade in a range between 9,53 and 9,68 during the session.
”We should see importer interest below the 9,60 level, but it will not be too much,” said a Johannesburg-based trader.
”It’s continuing to strengthen because of the high interest rates which are attractive for offshore investors, it has shrugged off bad news from other emerging markets and there is considerable interest from fund managers in currencies such as the rand and the Australian dollar.”
Bonds were little changed and largely seen rangebound ahead of Tuesday’s release of October consumer inflation data.
A Reuters consensus poll of economists forecast the target CPIX inflation measure rising 12,2% in the year to October from 11,8%nt in September.
The short-dated R150, due 2005, was flat at 11,61% and the longer-dated R153, due 2010, was unchanged at 11,10%. – Reuters