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Johannesburg - The rand was fairly flat at midday on Thursday‚ but showed a softening bias‚ as continued dollar strength kept pressure on the euro.
“I find it significant that we aren’t setting a new high. The rand can’t quite seem to get above R9.16/$ level‚” said Jim Bryson‚ a currency trader at RMB. “This move here is genuine dollar strength‚ which is feeding through‚ but the dollar strength is starting to look a bit overdone against the euro.”
“We’re closely following the euro‚ but it’s taken so long to get us here that it will take quite an event to get to new levels of weakness against the dollar.”
All eyes will be on the BoE and ECB policy meetings later on Thursday.
US payroll data are expected on Friday and are likely to have an effect on the market.
“It will be interesting to see if there are any big moves in the euro. If Draghi signals any euro weakness for any reason‚ the euro certainly has the potential to weaken‚ which will influence the rand further‚” said Bryson.
At 12:00 the rand was bid at R9.1163/$ from R9.1163/$ at Wednesday’s close and R9.0344/$ at Tuesday’s close.
The local currency was bid at R11.8865/€ from its previous close of R11.8294/€ and at R13.6661 against sterling from R13.6652 before.
The euro was bid at $1.2973 from $1.2978 at Wednesday’ close and $1.3047 at Tuesday’s close.
“Left to it’s own devices - if there is no news around - we can expect the rand to settle back into ranges‚” he said.
“I find it significant that we aren’t setting a new high. The rand can’t quite seem to get above R9.16/$ level‚” said Jim Bryson‚ a currency trader at RMB. “This move here is genuine dollar strength‚ which is feeding through‚ but the dollar strength is starting to look a bit overdone against the euro.”
“We’re closely following the euro‚ but it’s taken so long to get us here that it will take quite an event to get to new levels of weakness against the dollar.”
All eyes will be on the BoE and ECB policy meetings later on Thursday.
US payroll data are expected on Friday and are likely to have an effect on the market.
“It will be interesting to see if there are any big moves in the euro. If Draghi signals any euro weakness for any reason‚ the euro certainly has the potential to weaken‚ which will influence the rand further‚” said Bryson.
At 12:00 the rand was bid at R9.1163/$ from R9.1163/$ at Wednesday’s close and R9.0344/$ at Tuesday’s close.
The local currency was bid at R11.8865/€ from its previous close of R11.8294/€ and at R13.6661 against sterling from R13.6652 before.
The euro was bid at $1.2973 from $1.2978 at Wednesday’ close and $1.3047 at Tuesday’s close.
“Left to it’s own devices - if there is no news around - we can expect the rand to settle back into ranges‚” he said.
