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Johannesburg - The rand was softer against the
dollar in noon trade on Monday as it tracked a weaker euro.
"The rand held up pretty well this morning and even hit 7.77 against the dollar, however, there has been a euro sell-off," a local currency trader said.
The rand would, however, continue to be news-driven, he added.
At 11:59 local time, the rand was trading at 7.8354 to the dollar from its previous close of 7.8175. It was trading at 10.8478 to the euro from 10.8492 before, and at 12.3508 against sterling from 12.3745 previously.
The euro was at $1.3845 from $1.3877 before.
Standard Bank currency strategists said in a morning note that the rand had managed to recover some ground against the dollar last week, holding steady below R8.00.
"With risk aversion having abated somewhat, the rand might consolidate its gains this week."
However, Standard Bank added that there were still a number of significant risks.
"Chief amongst these is the outlook for global growth. The release of China's GDP growth numbers for Q3:11 will be of paramount importance here. A disappointing result could have adverse consequences for risky assets, and the rand in particular seems to weaken more than most currencies when risk aversion rises."
SA CPI and retail sales data later in the week would shed further light on the local growth outlook and the prospects for another rate cut before year-end.
"We maintain that increased expectations of monetary accommodation could actually boost portfolio inflows, and thus see the rand retain its gains," Standard Bank concluded.
Meanwhile Dow Jones Newswires reported that risk sentiment in the eurozone was shaken after German Finance Minister Schauble said the upcoming EU summit would not present an ultimate solution for the debt crisis.
"Schauble's comments underline the sizeable risk that the upcoming EU summit will be long on rhetoric and short on substance," said Richard McGuire at Rabobank.
"The rand held up pretty well this morning and even hit 7.77 against the dollar, however, there has been a euro sell-off," a local currency trader said.
The rand would, however, continue to be news-driven, he added.
At 11:59 local time, the rand was trading at 7.8354 to the dollar from its previous close of 7.8175. It was trading at 10.8478 to the euro from 10.8492 before, and at 12.3508 against sterling from 12.3745 previously.
The euro was at $1.3845 from $1.3877 before.
Standard Bank currency strategists said in a morning note that the rand had managed to recover some ground against the dollar last week, holding steady below R8.00.
"With risk aversion having abated somewhat, the rand might consolidate its gains this week."
However, Standard Bank added that there were still a number of significant risks.
"Chief amongst these is the outlook for global growth. The release of China's GDP growth numbers for Q3:11 will be of paramount importance here. A disappointing result could have adverse consequences for risky assets, and the rand in particular seems to weaken more than most currencies when risk aversion rises."
SA CPI and retail sales data later in the week would shed further light on the local growth outlook and the prospects for another rate cut before year-end.
"We maintain that increased expectations of monetary accommodation could actually boost portfolio inflows, and thus see the rand retain its gains," Standard Bank concluded.
Meanwhile Dow Jones Newswires reported that risk sentiment in the eurozone was shaken after German Finance Minister Schauble said the upcoming EU summit would not present an ultimate solution for the debt crisis.
"Schauble's comments underline the sizeable risk that the upcoming EU summit will be long on rhetoric and short on substance," said Richard McGuire at Rabobank.
