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Johannesburg - The rand was slightly weaker in early trade on Tuesday, but still trading in the same R6.85 and R6.92 range as the past couple of days. The euro lost a bit of ground against the dollar and gold is also trading off its highs, which has contributed to the rand's softer tone.
At 08:56 local time the rand was bid at R6.8988 to the dollar from R6.8690 at the previous close. It was bid at R9.5987 to the euro from R9.5685 before and at R10.9207 against sterling from R10.9042 at its previous close.
The euro was bid at $1.3914 from $1.3933 on Friday.
"The rand is softer against the euro this morning, but focus will be on what the dollar does when New York opens. It is trading in a range and will continue to do so in the short-term," said a trader.
RMB analysts said in their morning report that Treasury Secretary Geithner's comments that the US would not devalue the USD were getting attention - but this had never been their intention, USD weakness is rather an unintended consequence of easy monetary policy.
Weak US data on Monday only confirms that another round of stimulus is likely.
Comments meanwhile on currency matters come thick and fast ahead of the weekend G20 Finance Ministers and Central Bank Governors' meeting, but while there is a lot of talk on the need to stabilise currency markets there have not been any workable suggestions, they said.
"The focus for now remains on the USD. EUR/USD continues to gyrate but has held below the 1.40 level. USD/ZAR remains just below R6.90 but risks a break above if EUR/USD can make fresh lows under 1.3900," RMB analysts said
Dow Jones Newswires reports that the euro fell against the dollar in Asia on Tuesday as the Reserve Bank of Australia's dovish minutes reduced expectations for higher domestic interest rates, with the subsequent fall of the Australian unit having a knock-on effect on the risk-sensitive common currency.
At 08:56 local time the rand was bid at R6.8988 to the dollar from R6.8690 at the previous close. It was bid at R9.5987 to the euro from R9.5685 before and at R10.9207 against sterling from R10.9042 at its previous close.
The euro was bid at $1.3914 from $1.3933 on Friday.
"The rand is softer against the euro this morning, but focus will be on what the dollar does when New York opens. It is trading in a range and will continue to do so in the short-term," said a trader.
RMB analysts said in their morning report that Treasury Secretary Geithner's comments that the US would not devalue the USD were getting attention - but this had never been their intention, USD weakness is rather an unintended consequence of easy monetary policy.
Weak US data on Monday only confirms that another round of stimulus is likely.
Comments meanwhile on currency matters come thick and fast ahead of the weekend G20 Finance Ministers and Central Bank Governors' meeting, but while there is a lot of talk on the need to stabilise currency markets there have not been any workable suggestions, they said.
"The focus for now remains on the USD. EUR/USD continues to gyrate but has held below the 1.40 level. USD/ZAR remains just below R6.90 but risks a break above if EUR/USD can make fresh lows under 1.3900," RMB analysts said
Dow Jones Newswires reports that the euro fell against the dollar in Asia on Tuesday as the Reserve Bank of Australia's dovish minutes reduced expectations for higher domestic interest rates, with the subsequent fall of the Australian unit having a knock-on effect on the risk-sensitive common currency.
