Johannesburg - The rand was stuck in a tight range against
major currencies in midday trade on Tuesday as the euro rebounded after
hitting fresh four-year lows but then slipped back again.
At 12:05 the rand was bid at R7.8064 to the dollar from R7.8065 at its previous close. It
was bid at R9.3072 to the euro from its previous close of R9.3100 and was at
R11.2452 against sterling from R11.2933.
The euro was bid at $1.1910 from $1.1922 overnight.
With little local data to focus on, the rand will continue to follow the euro, said a local
RMB analysts said in their morning report that Germany's austerity measures announced on Monday
have offered little respite to the beleaguered single currency.
"Risk sentiment remains fragile and will continue to drive short-term
moves in high-yielding
assets, commodities prices and emerging market currencies, notably the rand which
should linger below USD/R8.00 today," RMB said.
the crosses, the EUR/ZAR remains poised above the key technical level of R9.30 mainly due to a
marginal uptick in EUR/USD.
"Although EUR/USD is hovering around $1.1950, another spell of
short-selling could induce a slide
to $1.1845, which will drag EUR/ZAR lower," RMB said.
- I-Net Bridge