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Johannesburg - The rand traded in a narrow range
in noon action on Friday as investors looked to square their positions
moving into the weekend, and ahead of yet another eurozone meet, this
time in Paris.
At 11:51 local time, the rand was trading at 7.8554 to the dollar from its previous close of 7.8799. It was trading at 10.8376 to the euro from 10.8229 before, and at 12.3845 against sterling from 12.4011 previously.
The euro was at $1.3800 from $1.3734 before.
A local dealer highlighted an "exceptionally quiet market" following a torrid few sessions as investors "look to square up their positions going into the weekend". The dealer said that the rand was trapped in a tight range ahead of a meeting of the group of 20 finance ministers and central bank governors in Paris this weekend.
RMB currency analysts wrote in a morning note that trade looked set for 7.78/80 - 8.00, with contained volatility, as attention turned to whether Europe could deliver what it had promised.
"Italy and Spain have reappeared as worries. Prime Minister Berlusconi looks set to scrape through a no confidence vote today. Spain was downgraded overnight by S&P. Meanwhile, both countries are seeing their debt costs start to rise. Let's hope this doesn't continue as its far from clear that the eurozone would be able to deal with the situation, even with their newfound energy.
The main event today and tomorrow is the G20 Finance Ministers meeting. Expect some sharp criticisms of Europe, and more promises, but only more signs that France and Germany are overcoming their differences would have much impact. The US Chinese spat over the CNY will also get airtime.
We have some meaningful data releases, with US September retail sales and October consumer confidence data the main focus although recent figures have largely broken fears that the US is heading back into recession.
For the last few months we have held the view that the short-term risks on US$/ZAR are to the topside but that once stress eases, the ZAR can claw back its losses. Over the past few days it seemed that the ZAR recovery could come much faster than expected. The failure to break lower over the past few days, however, supports our original view.
Dow Jones Newswires reported that eurozone harmonised CPI came in up 3.0% in the year to September from 2.5% in August, the highest rate since October 2008 and well above the ECB's target of just below 2%.
"There is still very much a risk-on approach by investors. Worries over Europe seem to have been placed on the side lines at the moment," said Spreadex.
At 11:51 local time, the rand was trading at 7.8554 to the dollar from its previous close of 7.8799. It was trading at 10.8376 to the euro from 10.8229 before, and at 12.3845 against sterling from 12.4011 previously.
The euro was at $1.3800 from $1.3734 before.
A local dealer highlighted an "exceptionally quiet market" following a torrid few sessions as investors "look to square up their positions going into the weekend". The dealer said that the rand was trapped in a tight range ahead of a meeting of the group of 20 finance ministers and central bank governors in Paris this weekend.
RMB currency analysts wrote in a morning note that trade looked set for 7.78/80 - 8.00, with contained volatility, as attention turned to whether Europe could deliver what it had promised.
"Italy and Spain have reappeared as worries. Prime Minister Berlusconi looks set to scrape through a no confidence vote today. Spain was downgraded overnight by S&P. Meanwhile, both countries are seeing their debt costs start to rise. Let's hope this doesn't continue as its far from clear that the eurozone would be able to deal with the situation, even with their newfound energy.
The main event today and tomorrow is the G20 Finance Ministers meeting. Expect some sharp criticisms of Europe, and more promises, but only more signs that France and Germany are overcoming their differences would have much impact. The US Chinese spat over the CNY will also get airtime.
We have some meaningful data releases, with US September retail sales and October consumer confidence data the main focus although recent figures have largely broken fears that the US is heading back into recession.
For the last few months we have held the view that the short-term risks on US$/ZAR are to the topside but that once stress eases, the ZAR can claw back its losses. Over the past few days it seemed that the ZAR recovery could come much faster than expected. The failure to break lower over the past few days, however, supports our original view.
Dow Jones Newswires reported that eurozone harmonised CPI came in up 3.0% in the year to September from 2.5% in August, the highest rate since October 2008 and well above the ECB's target of just below 2%.
"There is still very much a risk-on approach by investors. Worries over Europe seem to have been placed on the side lines at the moment," said Spreadex.
