DJ. S Africa Rand Up On Offshore Dlr Selling; Bond Yields Dn
JOHANNESBURG (Dow Jones)--The South African rand was sharply higher against the U.S. currency late Tuesday on dollar exports and offshore dollar selling, dealers said.
Around 1505 GMT, the rand was trading at ZAR10.2500 against the dollar, from ZAR10.4730 late Friday, while on the debt market the R150 government bond yield had fallen to 11.630% from 11.660%. The longer-dated R153 bond was yielding 11.770%, down from 11.800% Friday.
The rand gained more than 30 cents in local trading Tuesday after it fell to ZAR10.6900 in offshore trading Monday.
South African financial markets were closed Monday for a public holiday.
Dealers said the rand rose on large dollar sell orders out of London, which prompted local market participants to cover their short rand positions.
They added that the local currency ignored the release of inflation data which showed annual CPIX inflation rose to 9.2% in May from 8.8% in April.
CPIX, which excludes mortgage interest payments, is at its highest level since its introduction in 1998, surging from 5.8% in September on the back of a weak rand.
May's CPIX number was exactly in line with economists' expectations.
Dealers said they expect to see the rand trade between ZAR10.1500 and ZAR10.5500 over the next few sessions, with a move back through ZAR10.5500 likely to see the local currency target its next key support at ZAR10.800.
On the debt market, yields ended lower Tuesday on the rand's recovery against the dollar and the release of the CPIX data.
While the R150 government fell to a low at 11.625%, the longer dated R153 ended the session around its low at 11.770%.
12.0% RSA 150 OF 2005: 11.630% VS 11.660%
13.0% RSA 153 OF 2010: 11.770% VS 11.800%
-By Adam Aljewicz, Dow Jones Newswires; +27 11 783 7848; adam.aljewicz at dowjones.com
(END) Dow Jones Newswires 18-06-02
1521GMT
DJ info: 1059,1857,4042 N/DJCS,N/DJWI,N/BON,N/DJOS,N/EXC,N/FRX,N/FXC,N/ICM,N/MKC,N/MKT
FSN874 FC COMMENTS CURRENCY 2002-06-18 15:21:40 UTC ^^^^^