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Rand firms amid positive global markets

Jun 10 2010 16:02

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Johannesburg - The rand tracked global markets firmer in afternoon trade on Thursday.

At 15:37 the rand was bid at R7.7027 to the dollar from R7.7740 at its previous close. It was bid at R9.3128 to the euro from its previous close of R9.3274 and was at R11.2629 against sterling from R11.3074.

The euro was bid at $1.2097 from $1.1990 overnight.

A local trader said the rand found support amid firmer world markets, with Dow futures trading higher. "It is very quiet though," he said.

Dow Jones Newswires reports that the euro pushed modestly higher on Thursday against the dollar as strong global economic data lent credence to a global economic rebound, despite lingering problems of eurozone sovereign debt.

The euro reacted little in the immediate aftermath of the European Central Bank's early Thursday decision to stand pat on key interest rates, but investors will listen closely to the press conference following the earlier rate announcement for any clues as to how the ECB will deal with the debt crisis.

Spain's successful launch of a new three-year bond helped soothe some market fears over debt-stressed eurozone countries.

"Markets may [be] anticipating some further commitment from the ECB to its sovereign purchase program at [Thursday's] meeting," said analysts at Credit Suisse. Investors have sought more information about the ECB's government bond-buying programme, and some hope for additional clarity at Thursday's meeting. 

  - I-Net Bridge
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