PICKNPAY: 7,393 +33 (+0.45%)
South Africa's rand steady as dollar struggles, stocks to open lower
JOHANNESBURG, Oct 16 (Reuters) - South Africa's rand inched
lower early on Tuesday due to profit-taking as the dollar
regained some ground after sliding on poor retail sales data.
At 0630 GMT the rand was 0.07 percent weaker at
14.3750 per dollar, down from an overnight best of 14.3250 as
its three-session rally ran out of steam.
The rally was sparked by the decision by Moody's to delay
its review on South Africa's sovereign debt, already seen as a
low risk event by investors, and was helped by the greenback's
With breathing room building between the 15.00 top and a
close below the 14.50 technical barrier in the face of continued
uncertainty over the impact of the trade war between Washington
and Beijing, traders said the rand could soon test 14.00 mark.
"The technical picture remains biased toward more rand
strength especially after yesterday's break and close below the
14.42 support level and 55-day moving average," Standard Bank's
chief trader Warrick Butler said in a note.
Government bonds were flat in early trade, with the yield on
the benchmark 2026 issue up 0.5 basis points to 9.225
Stocks are due open flat at 0700 GMT, with the JSE
securities exchange's Top-40 futures index down 0.3
Supermarket chain Pick n Pay said on Tuesday
half-year profit before tax jumped 19.1 percent as price cuts
attracted more shoppers to its stores, yielding a 670.2 million
rand profit before tax.
(Reporting by Mfuneko Toyana
Editing by Raissa Kasolowsky)
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