Rand remains range-bound

Johannesburg - The rand continued to trade in a tight range by midday on Monday with very little economic data to provide direction.

At 11:25 the rand was bid at R7.4295 to the dollar from R7.3837 at its previous close. It was bid at R10.1812 to the euro from its previous close of R10.1862 and was at R11.1985 against the sterling from R11.2288.

The euro was bid at $1.3715 from $1.3773 previously.

A local trader said: "We are in the same position as last week, in a range of R7.36-R7.46 against the dollar. We need to break through those levels to see any real action."

Dow Jones Newswires reported that in the European foreign exchanges, the dollar was modestly firmer. The euro weakened to $1.3731 at 09:00 GMT, down from $1.3769 late in New York on Friday. The dollar was at ¥90.67 up from ¥90.57.

Investors will be watching the Fed's policy statement on Tuesday for any clues on when it will move from its ultra-easy monetary policy. The central bank is widely expected to leave rates unchanged near zero, and retain its commitment to leave rates on hold for an extended period.

Bank of New Zealand currency strategist Mike Jones said the Fed was likely to upgrade its assessment of the US economy, and this may provide some mild support to the US dollar despite the likelihood of rates staying low for some time.

Jones also said the outcome of the Bank of Japan's meeting will be "more exciting than usual." He said: "The yen has suffered of late from market speculation, the BOJ will increase its asset purchase scheme to stave off deflationary pressures. If the BOJ fails to deliver, expect a bounce in the yen."

- I-Net Bridge