Rand tracks euro, gold

Johannesburg - The rand continued to firm in the afternoon session on Wednesday tracking the euro which broke through 1.5000 against the greenback, and amid a gold price that continued to find new record-breaking ground.

At 15:37 the rand was bid at 7.3744 to the dollar from 7.4446 at its previous close. It was bid at 11.1088 to the euro from its previous close of 11.1326 and was at 12.3230 against sterling from 12.3492.

The euro was bid at $1.5083 from $1.4963 overnight.

Gold last quoted at $1 1181.25/oz.

A local trader said: "Rand strength is based on a stronger euro which broke the 1.5000 level and beyond against the dollar, while gold is well placed. We saw support at 7.34 against the dollar, and the rand looks strong short-term."

Earlier, Dow Jones Newswires said that the euro is again attempting to make a sustained rise above $1.50 in Europe on Wednesday, as the price of gold rallies to a new record high and European and Asian stocks stage a rebound.

Global sentiment was also helped by rising speculation that the Reserve Bank of Australia will lift its interest rates by another 25 basis points when it meets next week.

Apart from helping the Australian dollar rise sharply against its US counterpart, this more hawkish mood helped to push the dollar down to a 10-month low under ¥88.01 and the dollar index down to a 15-month low at 74.66.

Sentiment wasn't helped by a downward revision to US third quarter GDP annual growth to 2.8% from 3.5%.

However, as the price of gold continued to power ahead to a new record over $1 180 an ounce, global stocks headed higher.

- I-Net Bridge