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Firmer rand tracks euro

Feb 02 2010 09:49

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Johannesburg - The South African rand remained firm in the morning session on Tuesday, tracking the single currency.

RMB analysts noted real movement in the euro/rand yesterday, having made fresh post-crisis lows down to 10.40.

At 08:27 the rand was bid at R7.4952 to the dollar from R7.4800 at its previous close. It was bid at R10.4282 to the euro from its previous close of R10.4359 and was at R11.9389 against the sterling from R11.9381.

The euro was bid at $1.3922 from $1.3921 previously.

RMB analysts said in their morning report that the January blues had given away to February optimism.

Analysts John Cairns and Nema Ramkhelawan said: "After three weeks of almost solid weakness global markets made a welcome bounce yesterday. This doesn't seem to have the impetus to continue given a lack of data on the events calendar to support. US dollar/rand at least has finally broken its range - although to the bottom side rather than the topside we predicted.

"Technically the way is open for further moves downwards but, with the markets still nervous, it looks like we will settle at new levels in the low 7.50s. The real mover is euro/rand which made fresh post-crisis lows down to 10.40 yesterday," RMB said.

- I-Net Bridge

 
 
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