Johannesburg – The rand gained ground in late trade on Thursday on a firmer euro due to the prospect of the US averting the fiscal cliff before year-end. Such a resolution would lead to risk on trade and would help the rand gain further value.
“The rand is a bit stronger due to a firmer euro‚ amid thin and quiet trade and low volumes seen. We will continue trading in the R8.45 to R8.60 range until there is a clear idea of how US politicians are going to resolve the cliff issue‚” a local trader said.
At 3:42‚ the rand was bid at R8.4991/$ from its previous close of R8.5657/$.
The local currency was bid at R11.2853/€ from its previous close of R11.3265/€ and at R13.7395 against sterling from R13.8039 before.
The euro was bid at $1.3277 from its overnight close of $1.3227.
The US‚ the world’s biggest economy‚ has a year-end deadline to avert the US fiscal crisis of spending cuts and tax hikes worth billions of dollars‚ which analysts believe could tip the country into recession.
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