Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rand Gains as Italy’s Borrowing Costs Fall, Boosting Risk Demand

Don't Miss Out —
Follow us on:

Dec. 28 (Bloomberg) -- The rand strengthened for a fifth day against the dollar after Italy’s borrowing costs fell at an auction, easing concern Europe’s debt crisis may escalate and boosting demand for riskier, emerging-market assets.

South Africa’s currency appreciated as much as 0.5 percent, and traded 0.3 percent stronger at 8.1120 as of 3:20 p.m. in Johannesburg. Against the euro, it advanced 0.4 percent to 10.6048.

Italy today sold 9 billion euros ($11.8 billion) of six-month Treasury bills at half the yield it paid at an auction of the securities last month. Demand was 1.7 times the amount available for salee, compared with 1.47 times last month. The euro pared its decline against the dollar and European stocks advanced for a fourth day. South Africa’s benchmark stock index gained for a third day.

“The Italian auction went OK, and all Europe’s debt yields have fallen,” John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said by phone. “The euro-dollar is a bit higher, and that has pushed the dollar lower” against other currencies including the rand, he added.

South Africa’s 13.5 percent bonds due 2015 gained, cutting the yield six basis points, or 0.06 percentage point, to 6.76 percent.

To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.