Publications
Partners
Johannesburg - The rand pared some of its early losses in noon trade on Thursday, ahead of a European Central Bank (ECB) gathering and emergency Greek cabinet meeting.
The local currency moved back below 8.00 against the dollar as it looked to consolidate ahead of further news out of the eurozone.
At 11:54 local time, the rand was trading at 7.9727 to the dollar from its previous close of 8.0075. It was trading at 10.9818 to the euro from 10.9615 before, and at 12.7039 against sterling from 12.7316 previously.
The euro was at $1.3784 from $1.3685 previously.
A local dealer said that the euro had firmed during the morning, adopting a consolidatory approach following earlier steep losses. The rand followed suit.
He added that Greek Prime Minister George Papandreou called for an emergency cabinet meeting at noon following an earlier revolt against plans for a referendum on whether to remain a part of the eurozone.
Standard Bank said in a morning note that rand weakness had eased on Wednesday, as participants waited for further clarity on Greece's debt. It said that ahead of the G20 meeting at which the eurozone debt crisis was expected to top the agenda, there was still much uncertainty about how the situation would pan out.
"Also, Greece will get no further financial assistance until the outcome of the referendum is known," the note said.
Meanwhile, Dow Jones Newswires reported that the euro was firmer on hopes that the Greek prime minister would "fall", financial services firm Citi said, after MPs enabling Greece's Prime Minister Papandreou to maintain his parliamentary majority said early on Thursday they opposed the referendum.
Citi noted hopes that the ruling socialist party would fall and that the vote of confidence would not take place, but the bank warned that uncertainty was not going to disappear overnight. Citi said the New Democrats would probably win an election should there be a snap vote.
"The ND has opposed each and every bill related to the bailouts so far," the bank said, adding that the party said it wanted to reopen bailout agreements.
The local currency moved back below 8.00 against the dollar as it looked to consolidate ahead of further news out of the eurozone.
At 11:54 local time, the rand was trading at 7.9727 to the dollar from its previous close of 8.0075. It was trading at 10.9818 to the euro from 10.9615 before, and at 12.7039 against sterling from 12.7316 previously.
The euro was at $1.3784 from $1.3685 previously.
A local dealer said that the euro had firmed during the morning, adopting a consolidatory approach following earlier steep losses. The rand followed suit.
He added that Greek Prime Minister George Papandreou called for an emergency cabinet meeting at noon following an earlier revolt against plans for a referendum on whether to remain a part of the eurozone.
Standard Bank said in a morning note that rand weakness had eased on Wednesday, as participants waited for further clarity on Greece's debt. It said that ahead of the G20 meeting at which the eurozone debt crisis was expected to top the agenda, there was still much uncertainty about how the situation would pan out.
"Also, Greece will get no further financial assistance until the outcome of the referendum is known," the note said.
Meanwhile, Dow Jones Newswires reported that the euro was firmer on hopes that the Greek prime minister would "fall", financial services firm Citi said, after MPs enabling Greece's Prime Minister Papandreou to maintain his parliamentary majority said early on Thursday they opposed the referendum.
Citi noted hopes that the ruling socialist party would fall and that the vote of confidence would not take place, but the bank warned that uncertainty was not going to disappear overnight. Citi said the New Democrats would probably win an election should there be a snap vote.
"The ND has opposed each and every bill related to the bailouts so far," the bank said, adding that the party said it wanted to reopen bailout agreements.
