From Bloomberg

The rand reserved earlier increases against the dollar amid low liquidity in the South African foreign-currency market after a two-day break. Bonds declined.

The rand erased a gain of as much as 0.2 percent against a dollar that weakened as much as 1 percent versus the pound and 1.5 percent against the euro. Trading in the currency of Africa’s largest economy is lackluster following two public holidays and ahead of the weekend, according to traders.

“The weakening is largely due to thin volumes in the markets,” Thando Vokwana, a fixed-income trader at FirstRand Ltd., said by phone from Johannesburg. “It’s a function of a lack of liquidity in the market.”

The rand slid 0.9 percent to 10.4504 per dollar by 2:31 p.m. in Johannesburg. The yield on the benchmark rand-denominated government bonds due December 2026 rose two basis points, or 0.02 percentage point, to 8.19 percent. The currency weakened 2 percent against the euro to 14.4655 and declined 1.6 percent against the pound.

The dollar weakened versus the euro and the pound as European companies repatriated earnings before the end of the year, according to Ion de Vleeschauwer, chief currency dealer at Bidvest Bank Ltd.

Written by Jaco Visser/ Read more at Bloomberg