South African rand falls as dollar edges up on stable bond yields

  • Reuters
  • Forex News
South African rand falls as dollar edges up on stable bond yields
Credit: © Reuters.

JOHANNESBURG, March 27 (Reuters) - South Africa's rand extended its losses against the dollar on Wednesday, with the greenback edging higher as U.S. Treasury yields, the subject of much attention and concern, stabilised.

* At 0645 GMT, the rand ZAR=D3 traded at 14.4700 per dollar, 0.42 percent weaker than its New York close on Tuesday.

* "The rand continues to seesaw as the week progresses, struggling to retain momentum in either direction," said Bianca Botes, a corporate treasury manager at Peregrine Treasury Solutions.

* An uptick in the dollar and a slowdown in the Asian market rally in the overnight session are adding pressure on the local unit, with global growth concerns remaining the key theme this week, she added.

* Locally, with no top tier data due, investors are waiting for Thursday's central bank monetary policy decision, and a Moody's rating review on Friday, which is likely to be after local markets close.

* Stocks were set to open slightly higher at 0700 GMT, with the JSE securities exchange's Top-40 futures index ALSIc1 up 0.14 percent.

* In fixed income, the yield on the benchmark government due in 2026 ZAR186= rose 1.5 basis points to 8.755 percent in early trade.

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