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Johannesburg - The rand firmed against the dollar on Tuesday, taking its cue from the euro's rally in thin domestic trading conditions.
South African stocks ended mixed as resource shares fell in line with global commodities but banking shares roared higher as they took heart from robust results posted by global peers.
Domestic markets are prone to exaggerated moves this week and will follow global trends more closely as liquidity is light because of public holidays on Monday and Wednesday.
The rand was trading at R6.70/$ in late afternoon trade, 0.4% stronger than Monday's New York close of R6.7267/$. It hit a session high of R6.6921/$ earlier, its firmest in two weeks.
"The rand has been tracking the broader market trends and to a point the fortunes of the euro, which has improved in early Tuesday trade," said IFR Markets, a Thomson Reuters news and market analysis service, which sees the rand firming to R6.62/$.
The eurozone is South Africa's largest trading partner and the rand often follows the euro's moves.
The single currency hit 16-month highs to the dollar on bets that the US Federal Reserve bank will maintain loose monetary policy on Wednesday after its policy meeting.
If the US keep its super-loose monetary policy, money should keep flowing to emerging markets such as South Africa, bolstering its high yielding currency.
Charts suggest the rand's bullish trend is intact. The currency has been trading firmer than its 100 and 200 day moving average since mid-March.
The rand will have to decisively break R6.66/$ to target this year's high of R6.55/$, hit on January 3. It tried and failed to break this level early in April.
South African stocks ended mixed as resource shares fell in line with global commodities but banking shares roared higher as they took heart from robust results posted by global peers.
Domestic markets are prone to exaggerated moves this week and will follow global trends more closely as liquidity is light because of public holidays on Monday and Wednesday.
The rand was trading at R6.70/$ in late afternoon trade, 0.4% stronger than Monday's New York close of R6.7267/$. It hit a session high of R6.6921/$ earlier, its firmest in two weeks.
"The rand has been tracking the broader market trends and to a point the fortunes of the euro, which has improved in early Tuesday trade," said IFR Markets, a Thomson Reuters news and market analysis service, which sees the rand firming to R6.62/$.
The eurozone is South Africa's largest trading partner and the rand often follows the euro's moves.
The single currency hit 16-month highs to the dollar on bets that the US Federal Reserve bank will maintain loose monetary policy on Wednesday after its policy meeting.
If the US keep its super-loose monetary policy, money should keep flowing to emerging markets such as South Africa, bolstering its high yielding currency.
Charts suggest the rand's bullish trend is intact. The currency has been trading firmer than its 100 and 200 day moving average since mid-March.
The rand will have to decisively break R6.66/$ to target this year's high of R6.55/$, hit on January 3. It tried and failed to break this level early in April.
