Rand on the front foot

Johannesburg - The rand continued to eye R7.28 against the dollar in midday play on Wednesday tracking a steady euro.

The local currency did not react to the latest SA retail sales stats.

South African retail trade sales at constant (2008) prices for January declined -1.7% year-on-year (y/y), after recording a revised -3.8% (y/y) decline in December, figures released on Wednesday by Statistics South Africa showed.

Retail trade sales, at current prices, for January 2010 increased by 4.7% compared with January 2009, while sales for the corresponding period in 2009 increased by 12.4%.

At 11:55 the rand was bid at R7.3182 to the dollar from R7.3500 at its previous close. It was bid at R10.0800 to the euro from its previous close of R10.1129 and was at R11.2182 against the sterling from R11.1827.

The euro was bid at $1.3772 from $1.3766 previously.

A local trader said there was no reaction to SA retail data. "At these current levels there is support for dollar/rand, tracking a slightly firmer euro.

"A further bounce from the euro and we could see the rand at R7.28, and then R7.25 against the dollar," he said.

Dow Jones Newswires reported that in the European foreign exchanges, the euro was steady on the Fed's statement and S&P's comments on Greece.

At 09:15 GMT, it was trading at $1.3774, up from $1.3766 in late New York trade on Tuesday. Meanwhile, the dollar firmed slightly to ¥90.63, up from ¥90.31.

- I-Net Bridge