South Africa’s rand makes rebound

was a correction after being oversold.
The rand has repeatedly scaled new records last week and was on track to register its worst week since October 2008.
It hit 8,4950 to the dollar late on Thursday, its weakest since May 2009.
Should the level be breached it would open up further weakness but if it holds, it could signal a correction is in the offing.
The rand has plunged nearly 20 percent in the past three weeks as increasing worries about a threat of another global slump have seen investors flee high-risk assets.
Government bonds have followed the rand weaker, with the yield curve steepening by between 50 and 90 basis points since the start of September.
A dovish central bank statement on Thursday that left the door open for a rate cut added to the currency’s bearish tone.
“There is a massive emerging market bailout and there is no logic to it. I think it’s overdone but it does not mean it won’t go higher,” said Steven Greenstein, a dealer at Investec.
Market analysts IGM said in a note the rand was in oversold territory and may see a correction towards to 7,85/7,70 unless it breaks 8,5805.
Investec’s Greenstein said the market was nervous with market players looking to this weekend’s International Monetary Fund and World Bank meetings.
The semi-annual IMF and World Bank come as the Fund has lowered its forecast for world economy and the debt crisis in the eurozone deepens. – Reuters.