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2013-02-28
Currencies


Yesterday, the South African rand weakened against most of its major peers, after the South African Finance Minister, Pravin Gordhan, revised the budget deficit forecast for fiscal year 2012-2013 to 5.2% of the Gross Domestic Product from a previous forecast of 4.8%. He also predicted that the nation’s economy is likely to grow by 2.7% in 2013, compared to a 3.0% growth previously estimated. However, economic growth in 2014 and 2015 is expected to quicken to 3.5% and 3.8%, respectively.

The yield on benchmark government bonds rose yesterday. The yield on the 2015 bond rose to 5.26%, while that for the longer-dated 2026 issue advanced to 7.28%.

At 06:00 SAST, the US dollar is trading 0.3% higher against the South African rand at R8.8481, while the euro is trading 0.4% higher at R11.6299.

The Japanese yen has dropped against its major peers this morning, after Japan’s Prime Minister, Shinzo Abe, nominated Asian Development Bank President, Haruhiko Kuroda, who is an advocate of aggressive monetary easing, to be the next Bank of Japan Governor. Yesterday, the euro advanced against the major currencies, after Italy sold the full targeted amount of EUR6.50bn at an auction of five and ten year bonds.

At 06:00 SAST, the euro marginally advanced against the US dollar to trade at $1.3145, while it has remained flat against the British pound at GBP0.8665.

Thank you Anchor Capital


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