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Rand continues range-bound trend

Mar 11 2010 15:20

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Johannesburg - The rand continued to trade within a range on Thursday afternoon.

Having tested highs of R7.46 and a half against the dollar earlier in the day amid importer demand, the local currency firmed a fraction, but still within a range of R7.36-R7.46 against the dollar.

At 15:45 the rand was bid at R7.4389 to the dollar from R7.3847 at its previous close. It was bid at R10.1505 to the euro from its previous close of R10.0913 and was at R11.1674 against the sterling from R11.0601.

The euro was bid at $1.3642 from $1.3642 previously.

A local currency trader said: "We tested highs of R7.46 and a half earlier, but then came off again, but still within the range of R7.36-R7.46 against the dollar. Every time the rand does strengthen though, we see the range shifting slightly higher (firmer).

"We do need to breach R7.46 though, for any break out," he said.

Dow Jones Newswires in the European foreign exchange markets, fears over China drove the dollar and the yen a little higher, but both currencies soon fell back again. At 12:05 GMT, the dollar stood at ¥90.68, up from ¥90.52 late on Wednesday in New York, while the euro traded at ¥123.83, up from ¥123.53. The euro was barely changed at $1.3657.

Investors warned that the euro and dollar could slip if US initial jobless claims disappoint.

- I-Net Bridge

 
 
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