South Africa's rand falls close to one-month low as euro optimism spreads

May 9, 2017
Source: Reuters
South Africa's rand falls close to one-month low as euro optimism spreads

South Africa's rand extended losses, nearing its weakest level in a month as demand for riskier currencies as well as gold and other safe-haven commodities waned following France's election result.

* At 0640 GMT the rand weakened 0.62 percent to 13.6950 per dollar compared to a close of 13.6100 overnight in New York.

* The local currency slipped more than one percent in the previous session as the euro and dollar piled on the pressure following a wave of relief sparked by Emmanuel Macron's resounding victory in Sunday's French presidential ballot.

* Commodities also sold off with investors banking on a steadier political and economic climate in Europe and a rate rise in the U.S. in June. Gold remained near seven-week lows, inching 0.1 percent lower, while platinum fell 0.8 percent.

* Locally, no major data releases are expected. Analysts at Nedbank Capital said they anticipated the rand would weaken further but was unlikely to drop through technical support at 13.6500.

* Stocks were set to open higher at 0700 GMT, with the JSE securities exchange's Top-40 futures index up 0.43 percent.

*The yield for the benchmark government bond due in 2026 added 5 basis points to 8.775 percent.