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South Africa's rand slips in low-volume, low-risk market

Reuters logo Reuters 2017-08-03

A customer pays for his goods at a shop in Hillcrest, west of Durban, South Africa © REUTERS/Rogan Ward A customer pays for his goods at a shop in Hillcrest, west of Durban, South Africa South Africa's rand weakened early on Thursday, erasing most of the previous session's gains but staying in its recent range in a cautious market.

By 0650 GMT the rand had lost 0.44 percent to 13.2575, having closed at 13.2000 overnight in New York.

With fears of a third credit agency downgrade to "junk" lingering ahead of review by Moody's on Aug. 11 and little on the policy front suggesting rapid economic reform, traders were cautious of placing large bets.

There was a slight recovery in the dollar as bets on a rate hike by the U.S. Federal Reserve hardened, and lower gold prices also kept demand for the rand subdued.

Standard Bank and Markit publish the July purchasing managers index at 0715 GMT.

Bonds were flat, with the yield on the benchmark paper due in 2026 unchanged at 8.61 percent.

Stocks were set to open firmer at 0700 GMT, with the JSE securities exchange's Top-40 futures index up 0.2 percent.

(Reporting by Mfuneko Toyana; editing by John Stonestreet)

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