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Rand firmer as Greece concerns fade

Feb 24 2012 12:16 I-Net Bridge

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Johannesburg - The rand was firmer against the dollar in noon trade on Friday as it tracked a euro that seemed to have - for the present - put aside worries about the Greek debt situation.

"Sentiment appears to have turned in favour of risk again," a local analyst said, adding that the global backdrop was supportive of further rand strength.

At 11:40 local time, the rand was bid at R7.6080 to the dollar from its previous close of R7.6552. It was bid at R10.1900 to the euro from R10.2295 before, and at R12.0075 against sterling from R12.0390 previously.

The euro was bid at $1.3391 from its previous close of $1.3372.

RMB said in a note on Friday morning that global markets were performing a little better, spurred by Thursday's good German business confidence figures and data that showed the US job's environment remained strong.

"It looks as if there will be some further gains today, with a possible nice boost to sentiment if the Dow passes the 13 000 mark, RMB said.

It also said the way was now open for the rand to gain further ground.

Meanwhile, Dow Jones Newswires reported that concerns about Greece had receded somewhat after it managed to negotiate its second bailout deal, and investors were now looking ahead to the second longer-term refinancing operation from the European Central Bank.

In addition, Greece's parliament on Thursday had approved the private sector involvement programme which included collective action clauses.

But Deutsche Bank strategist Jim Reid warned: "Greek developments still need close monitoring as we move on to the execution phase.

"Greece still has plenty to do before it gets the required funding to meet the March 20 redemptions of €14.5bn."

Data today showed that Germany's economy contracted in the fourth quarter of 2011 by 0.2%, in line with expectations and unchanged from the first gross domestic product reading.

Meanwhile, the French consumer confidence index rose slightly in February to 82 from 81 in January.

"French consumer confidence seems to hold well despite the rise in unemployment," said Manuel Maleki, economist at ING Bank.

 
 
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It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Sasha

"In the short term this is true, Greece will dominate the headlines on a day to day basis, until their next elections when there would be some clarity to answer the question, "What next for Greece?" Amazingly everyone except the politicians seem to be lining themselves up for worst case scenario, b... Read their blog...

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