Johannesburg - The rand traded in a tight range in the afternoon
session on Wednesday, with a local trader noting a less volatile day compared
with recent trading days. The rand is essentially tracking the euro at the
the rand was bid at R7.4728 to the dollar from R7.5098 at its previous close. It was bid at
R9.4714 to the euro from its previous close of R9.4985 and was at R11.1005
against the sterling from R11.2149.
was bid at $1.2668 from $1.2630 previously.
trader said: "The market was much less volatile today, with the rand
trading in a R7.45-48 range against the US dollar, still tracking
developments in Europe. However, we may see the local currency weaken against
the dollar tomorrow if the MPC decides to cut rates, which is
unlikely." a local dealer said.
Africa's repo rate is expected to remain unchanged at 6.5% when the decision is
announced on Thursday, according to a survey of 11 leading economists by I-Net
a trader noted that the rand had been boosted by rumours that Standard
Chartered was poised to make a bid for Nedbank had boosted the rand. Sky
News was reporting that Standard Chartered, the emerging markets bank, is
plotting a multi-billion pound takeover of Nedbank. The Sky report added that
talks have already taken place between Standard Chartered and Nedbank, but
these are at an early stage. Both parties said that they do not comment on
Meanwhile, Dow Jones Newswires reports that the UK pound weakened on Wednesday,
unable to hold on to levels over the key $1.50 mark, as investor exuberance
over a new coalition government turned to concern over the stressed budget
those new leaders face.
euro, meanwhile, also slipped as focus on longer-term issues of euro-zone
sovereign debt continued to eclipse the initial euphoria over the European
Union's massive $1 trillion rescue package.
"[The package] reverted
the problems in Europe back to a Euro-centric issue," said Camilla Sutton,
currency strategist at Scotia Capital in Toronto. "This has brought relief
to global markets and has allowed most currencies to make up some lost
ground," with those most tied to prospects for global growth, such as the
Canadian and Australian dollars, making headway against the dollar, she
- I-Net Bridge