The rand was steady against the dollar in late afternoon trade even as the euro sagged, following what some investors deemed a disappointing Italian bond auction.
|||The rand was steady against the dollar in late afternoon trade on Friday even as the euro sagged, following what some investors deemed a disappointing Italian bond auction.
“The markets have quietened down this afternoon but I can say it seems that the rand is starting to bottom out, it's looking a bit oversold,” a local analyst said.
At 15:33 local time, the rand was bid at R8.0459 to the dollar from its previous close of R8.0516. It was bid at R10.2768 to the euro from R10.3192 before, and at R12.3270 against sterling from R12.3450 previously.
The euro was bid at US$1.2782 from its previous close of US$1.2819.
Meanwhile Dow Jones Newswires reported that the euro fell in European trading hours on Friday after a mixed Italian sovereign debt auction helped to curtail expectations that the eurozone's sovereign debt crisis might be stabilising.
Against the dollar, the euro printed a fresh low for the day of US$1.2765.
Italy sold a total of EUR4.75 billion in government bonds, which was more than targeted. The yields demanded by investors were also substantially lower than seen in previous auctions in November and December.
But compared with Thursday's even stronger Spanish bond auction, the results underwhelmed some market participants, who noted the relatively soft levels of demand for Italy's November 2014 benchmark bond and recalled the country's still-massive funding requirements and pending Greek debt restructuring accord.
“Overall, it underscores that while the auctions in the eurozone have been battle victories, the war is a long way from being resolved (either way),” said Marc Ostwald, a strategist at Momentum Securities.
“As such these euro area auctions will continue to present themselves as market-risk events for a very protracted period,” he added. - I-Net Bridge
Source: http://www.iol.co.za/rand-steady-euro-off-highs-1.1212656
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