Futures Market News
Rand falls for first day in four
Mar 20, 2012 09:30 AM
Speculation about the slowing pace of economic growth in the globe's largest economic system pulled down the value of the South African rand on Tuesday, according to Bloomberg.
The monetary unit of the largest economy on the African continent registered the first day of losses in four days as speculation indicated raw material prices are poised to fall as growth in China slows. The Asian nation, host to the globe's second-largest economy that trails only that of the U.S., is the biggest trade partner to South Africa as it purchases 14 percent of the African nation's exports.
"The cyclical recovery will be stronger than either the Reserve Bank or consensus economists foresee," states a Tuesday email penned by economist George Glynos with ETM Analytics of Johannesburg to Bloomberg. "Local short-term interest rate expectations are likely to continue to trend higher from here. Local bond yields may rise."
The fourth quarter of 2011 saw the quickest development and growth spending in at least one year in South Africa as indicated by the weakening of the account deficit.
The South African Treasury on Tuesday sold 2018, 2026 and 2031 bonds totaling the equivalent of $278.73 million, according to Reuters.
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