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Rand tad lower, in a range

Oct 21 2009 09:25

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Johannesburg - The rand dipped against the dollar in early trade on Wednesday as the US currency stabilised.

The dollar gained against the euro and commdity-linked currencies after the European unit failed to break the $1.50 mark.

The rand was trading at R7.39 against the dollar, 0.3% softer than its previous close in New York.

Analysts said the rand would likely keep to a tight range during the session but could drift weaker should the dollar hold onto gains against the euro.

"It was rangy yesterday and I don't see a lot that is going to move the market off that pattern," Russell Lamberti of market analysts ETM said.

But he added an expected no-change decision for interest rates after a two-day meeting that will start later in the session and a possibly more hawkish central bank statement could help keep the rand relatively strong.

- Reuters

 
 
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