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'Weak dollar can't harm rand'

Nov 04 2008 12:30

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Johannesburg - The rand struck comfortably below the R10/dlr mark in late morning trade on Tuesday as the dollar came under a little pressure, but on the whole remained within a R9.80-R10.10 range.

"The dollar is weaker, but we use the term carefully after it was rampaging all over the place yesterday. It can't harm the rand, though, if the dollar comes under a little bit of pressure," said a senior currency dealer.

At 12:12 the rand was bid at R9.9323 to the dollar from a previous close of R10.0170. It was bid at R12.6449 to the euro from a previous R12.6199 and at R15.7398 against sterling from R15.7889 before.

The euro was bid at $1.2734 from $1.2586 overnight, while gold was quoted at $731.48 a troy ounce from $723.70/oz overnight.

The rand dealer said that despite the little bit of strength seen, the local unit remains within a range, which he pens at R9.80 - R10.10 to the dollar.

"Despite what is happening with the pound and the euro, we are remaining within a range," he noted.

Dow Jones Newswires reports the dollar is a little easier as a sharp 75bp cut in Australia rates focuses market attention on the risks of a global recession. A fall in crude toward $60 bbl adds to concern that the global slowdown will force more rate cuts elsewhere. Nevertheless, a rise in Japanese equities indicates a fall in risk aversion.

- I-Net Bridge

 
 
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