South Africa's rand retreats due to hawkish Fed, mining data ahead
JOHANNESBURG, Oct 18 (Reuters) - South Africa's randretreated early on Thursday after minutes from the U.S. FederalReserve's September meeting struck a hawkish tone, draining someof the enthusiasm for emerging currencies that lifted the localunit to a two-week peak.
* At 0640 GMT the rand was 0.26 percent weaker at 14.2900per dollar, having risen to 14.1050, its best since Oct. 1, asthe New York session kicked off before the release of the Fedminutes breathed life back into the greenback rally.
* The minutes from the meeting showed every Fed policymakerbacked raising interest rates, pushing the dollar index to its firmest in a week and knocking emerging currencies thathad befitted from a return of carry trade action.
* "The Turkish Lira has found massive favour amongst thoseseeking fortune and fame with their incredibly highs yields. Therand is of course benefiting in part from some of thisgoodwill," said chief trader at Standard Bank Warrick Butler.
* A better-than-expected retail sales print on Wednesdaysoothed fears Africa's most industrialised economy was stillwallowing in recession, and mining production figures due at0900 GMT will be watched for further signs ofrecovery.
* Bonds also suffered as U.S. 10-year treasuries climbed.The yield on the benchmark 2026 paper was up 4.5 basispoints to 9.165 percent.
* Stocks were due open lower at 0700 GMT, with the JSEsecurities exchange's Top-40 futures index down 0.94percent.
(Reporting by Mfuneko ToyanaEditing by Matthew Mpoke Bigg)
Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |