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Rand flat amid low volume trade

May 25 2009 12:20

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Johannesburg - The rand remained flat at midday on Monday, with very little volume traded due to public holidays in both the US and United Kingdom.

At 11:50 the rand was bid at R8.3416 to the dollar from an overnight close of R8.2604. It was bid at R11.6640 to the euro from a previous R11.6045 and at R13.2573 against sterling from R13.1888.

The euro was bid at $1.3978 from $1.4027 overnight.

A local trader said: "There is not much movement today due to the US/sterling holidays. The rand/dollar is a fraction lower, because of equity markets finishing lower in the previous trading day.

"The trading range is expected to be R8.38 on the upside, and R8.24 if it dips," he said.

RMB analyst John Cairns said in his morning report that global risk appetite continues to slip, but for the currency markets the story is all about USD weakness.

With the EUR/USD pushing above $1.40, USD/ZAR dipped very briefly below the key R8.25 support level on Friday but it proved unable to sustain.

"With US and UK markets on holiday, there seems little risk of this today. But risks remain through the week as the USD has broken key support levels against the majors and is no longer finding support from risk taking. Key perhaps will be the interest in the $101bn in Treasury bonds being issued this week," he said.

Earlier the Dow Jones newswires reported that the euro fell against the dollar and the yen on profit-taking on Monday morning in Tokyo.

- I-Net Bridge

 
 
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