Johannesburg – The rand bounced back in midday trade on Tuesday‚ on positive news coming out of the UK‚ where exports rose at their fastest pace in more than two years in May‚ leading to the trade deficit narrowing.
At 11:49 the rand was bid at R8.1777 to the dollar from its previous close of R8.2286. It was bid at R10.0760 to the euro from its previous close of R10.1286 and at R12.6983 against sterling from R12.7639 before.
The euro was bid at $1.2329 from its previous close of $1.2315.
RMB said in its morning report that markets were edgy due to concern over the eurozone crisis flaring up again.
“The rand has been fluctuating but now it seems like more people are willing to take a risk after the good news from the UK‚” Henry Flint of Thebe Stockbroking said.
Meanwhile‚ Dow Jones Newswires reported that the governor of the Bank of England said the eurozone’s failure to tackle its economic problems had created a “great black cloud” of uncertainty that is paralysing decision-making by businesses around the world.