SA's Rand Weaker as Investors see higher U.S. Rates

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A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016.  REUTERS/Philimon Bulawayo
A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

JOHANNESBURG  – South Africa’s rand hovered near a one-week low versus the dollar on Friday, on increased bets by investors that a U.S. interest rate hike is on the cards this year.

* Rand falls to session low of 13.9425, weakest since Sept 30, and trades 0.31 percent softer at 13.9350/dollar by 0655 GMT compared with Thursday’s close.

* Currency largely unmoved by central bank data showing South Africa’s net foreign reserves rose to $41.953 billion in September from $40.795 billion the previous month.

* Government debt also weakens across the curve, and yield for 10-year paper rises 3 basis points to 8.745 percent.

* South African bourse likely to open weaker, with blue chip futures index dipping 0.39 percent.

(Reporting by Stella Mapenzauswa; editing by John Stonestreet)

 

 

Reuters

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