Sun Oct 22 01:10:06 SAST 2017
Remembering reggae legend Lucky Dube (Photos)

To mark 10 years since Lucky Dube's death, his former recording company, Gallo Records, will release.

Bonds little changed despite stronger rand

By Karl Gernetzky | 2017-10-11 16:44:44.0

South African bonds were flat on Wednesday afternoon as the market awaited the US Federal Reserve meeting minutes due out in the evening‚ which may give further clues on possible interest-rate increases in the US later this year and next year.

A recent dollar rally faded somewhat on Tuesday‚ with emerging-market currencies also gaining against the greenback on Wednesday.

However‚ analysts were sceptical about the sustainability of the rand and bond gains ahead of the release of US consumer inflation data on Friday.

Higher inflation could increase the prospect for a US rate hike in December and an expected three further increases of 25 basis points in 2018.

The Fed surprised traders in September when it indicated the possibility of one more rate hike in 2017 and three in 2018. This hawkish tone came despite the fact that inflation had not recovered as expected‚ said Oanda analyst Craig Erlam.

Policy makers had‚ however‚ not given the impression that they were particularly confident when it came to these interest-rate projections‚ which was creating doubt around them‚ said Erlam.

In the longer term‚ the rand could be expected to weaken‚ said Standard Bank currency trader Warrick Butler. Domestic issues were likely to have an effect on the rand in coming weeks.

At 3.03pm the R186 was bid at an unchanged 8.67% and the R207 at 7.39% from 7.385%.

The rand was at R13.5305 to the dollar from R13.6745.