South Africa’s rand gains, eyes on Greece, power cuts

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JOHANNESBURG – South Africa’s rand was a tad stronger against the dollar early on Monday as China’s move to cut reserve requirements lifted sentiment but traders said Greece’s fiscal woes and local power cuts could limit gains.

At 0615 GMT the rand was trading 0.27 percent stronger at 12.0330 to the dollar compared with its closing level on Friday.

In fixed income, the yield for the 2026 benchmark was flat at 7.860 percent.

China’s central bank on Sunday cut the amount of cash banks must as reserves, the industry-wide cut in two months, adding more liquidity to bolster slowing growth.

“The rand will be boosted by China’s weekend cut in reserve requirements this morning, but the broader trend is the threat of weakness as Greece’s problems return to market focus,” said John Cairns, currency trader at Rand Merchant Bank.

“Eskom also remains in focus, with the country having suffered eight straight days of load shedding but the company having gained a chief ,” he added.

Shut out of bond markets and with financial aid frozen, Greece is perilously close to running out of cash and could be forced to choose between making debt payments or paying public salaries and .(Reuters)
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