Bloomberg News

Rand Drops Before European, U.K. Central Bank Meetings

April 04, 2013

The rand declined against the dollar before interest rate-setting decisions by the Bank of England and the European Central Bank.

The South African currency traded 0.5 percent lower at 9.2734 a dollar by 10:36 a.m. in Johannesburg and was little changed at 11.8536 a euro. Yields on the benchmark 10.5 percent government debt due December 2026 fell two basis points, or 0.02 percentage point, to 7.34 percent.

The Bank of England will probably keep the U.K.’s main interest rate at a record-low 0.5 percent, according to all 50 economists surveyed by Bloomberg News. The European Central Bank will leave its benchmark interest rate at a record-low 0.75 percent today, according to 54 of 56 economists in another Bloomberg survey. The Bank of Japan (8301) said it will boost monthly bond purchases to 7 trillion yen ($73.4 billion).

“Event risk comes from today’s BoJ, BoE and ECB meetings as well as tomorrow’s U.S. payroll figures,” John Cairns, a currency strategist at Johannesburg-based Rand Merchant Bank wrote in an e-mailed note to clients.

The rand has lost 8.6 percent since the start of the year, making it the worst performer among 25 emerging-market currencies tracked by Bloomberg.

To contact the reporter on this story: Jaco Visser in Johannesburg at avisser3@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus