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Rand looks for direction

Oct 28 2009 09:23

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Johannesburg - The rand was relatively unchanged from overnight levels in the morning session on Wednesday with very little about to drive the local currency, although eyes will still be on how markets react to government proposals to do away with exchange controls, following Treasury's Medium Term Budget announcement.

At R08:55 the rand was bid at R7.6587 to the dollar from R7.6590 at its previous close. It was bid at R11.3685 to the euro from its previous close of R11.3395 and was at R12.5435 against sterling from R12.5329.

The euro was bid at $1.4838 from $1.4811 overnight.

A local trader said: "The Dow and euro threatened late yesterday, but then failed to deliver. There is very little to drive the rand although there is still a danger if we hit R7.74 against the dollar. At R7.64 though we could dip lower to R7.58.

"It will be interesting to see how markets react to governments announcement on exchange controls," he said.

The trader added that CPI should not be a factor. - I-Net Bridge

 
 
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