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Johannesburg - The rand was strong in late afternoon trade on Monday in what a trader said had been a quiet session with both UK and US markets closed for public holidays.
At 15:41 the rand was bid at R8.2950 to the dollar from an overnight close of R8.2604. It was bid at R11.6065 to the euro from a previous R11.6045 and at R13.1903 against sterling from R13.1888.
The euro was bid at $1.3986 from $1.4027 overnight.
"The rand is strong. With the UK and US on holiday, the market is not trading properly. We have been trading in a range of R8.30-R8.35," the trader said.
"There is not much going on. Tomorrow we will start seeing some movement. But I believe that below R8.20, the rand can strengthen a bit more," he said.
Dow Jones Newswires reported that the dollar is marginally stronger against most of its major rivals early on Monday, with currency trading worldwide at a low ebb due to holiday market closes in the US and the UK.
With US Memorial Day and a UK banking holiday having stilled foreign exchange hubs New York and London, intraday trading ranges for the major currencies have been fairly narrow, and position-taking limited.
The dollar's incrementally better tone so far on Monday is mainly the result of a slight increase in global risk aversion, on economic concerns and also some geopolitical trepidation sparked by North Korea's nuclear test.
Overnight, the euro managed to approach the four month-plus highs in the mid-$1.4000s it reached on Friday, only to sag back following a weaker-than-expected German May IFO business confidence report.
Otherwise, there has been some limited market fallout from North Korea's announcement on Monday of its first nuclear test in three years, a provocative step with the potential to stoke regional and also international tensions.
The modest increase in risk aversion set off by the news has primarily hit the yen, which has fallen back despite some positive economic developments, as the monthly economic report issued by Japan's Cabinet Office was relatively upbeat and raised the economic assessment for Japan's economy.
- I-Net Bridge