Johannesburg – The rand experienced losses across the board at midday on Tuesday‚ with political factors still having an effect on market sentiment.
“The weakness continues to be driven by two main things: failure to resolve the farm strikes in the Western Cape and overhang from the downgrade last week‚” said Mark Kalkwarf a senior portfolio manager at the Iquad Group
“Although we’ve seen no change in fundamentals negative headlines in the media influence market sentiment. Recent comments in the news regarding the closures of mines and the distribution of agricultural land continue to drive losses‚” said Kalkwarf.
At 12:09‚ the rand was bid at R8.7484/$ from R8.7008/$ at Monday’s close and R8.7413/$ at Friday’s close. The local currency was bid at R11.6998/€ from its previous close of R11.6393/€ and at R14.0748 against sterling from R13.9827 before.
The euro was bid at $1.3379 from Monday’s close of $1.3376 and Friday’s close of $1.3352.
“Poor data out of Germany this morning is bad for global growth and will also have an effect on South Africa‚” Kalkwarf said.
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