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May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 28 2012 07:53
The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - A firm South African rand was a fraction stronger in the morning session on Wednesday, firmly in a range
tracking the greenback ahead of CPI and home stats out later in the US.
At 08:57 the rand was bid at R7.4342 to the dollar from R7.4810 at its previous close. It was bid at R11.0735 to the euro from its previous close of R11.1168 and was at R12.5030 against sterling from R12.5678.
The euro was bid at $1.4891 from $1.4862 overnight.
A local trader said: "We are range bound this morning, tracking the dollar again ahead of October consumer price index and housing stats out later."
RMB analysts John Cairns and Nema Ramkhelawan in a morning report noted that ECB President Trichet reiterated the need for a strong US dollar and, although he has expressed this view before, stressed the importance of a robust currency not only for the US but the "international community" as a whole.
"Locally the Sarb is faced with similar currency concerns. In her maiden MPC address Governor Marcus acknowledged the adverse effects of a stronger rand on certain sectors in the economy, but highlighted its positive effect on inflation," Cairns and Ramkhelawan said.
"The governor stamped her authority on proceedings by dismissing claims that her appointment was politically motivated and emphasised that the central bank will not target the exchange rate, as the rand's appreciation is a product
of exogenous factors," RMB said.
"Although the rand danced about during the governor's statement yesterday, it failed to strengthen beyond R7.35 largely due to euro/US dollar's inability to break 1.50. While the budding gold price continues to provide support to the rand, minimal increases in global equities and waning investor appetite for
risk might strangle further rand gains," the analysts said.
"Developments in euro/US dollar remain key as the rand remains bound to movements in the euro. Event risk is limited to US CPI and housing data today, which is expected to print in line with consensus," Cairns and Ramkhelawan concluded.
- I-Net Bridge