Johannesburg - The rand was virtually unchanged at midday on Wednesday having returned to its recent trading range following yesterday’s dip after North Korea’s nuclear test.
Absa Capital said in a note this morning that “heightened levels of risk aversion associated with geopolitical tensions surrounding North Korea kept the rand on the back foot yesterday”‚ however the currency appeared to bounce back in early trade this morning.
At 11.27 the rand was bid at R8.9003/$ from Tuesday’s close of R8.9032 and Monday’s close of R8.9074. The local currency was bid at R11.9939 /€ from its previous close of R11.9706 and at R13.9220 against sterling from R13.9458 before.
The euro was bid at $1.3475 from $1.3451 at Tuesday’s close.
Mark Kalkwarf‚ a senior portfolio manager at the Iquad group said this morning that geopolitical tensions failed to have any lasting effect as the rand was firmly back in its recent trading range of R8.85 to R8.95/$. “Positive sentiment emanating from the G7 meeting yesterday and foreign buying of local bonds prevented the rand from again testing the R9/$ level.”
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