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Rand trapped in a range

Jul 28 2010 15:48

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Johannesburg – The rand was range-bound in afternoon trade on Wednesday tracking euro movement.

At 15:34 local time the rand was bid at R7.3553 to the dollar from R7.3110 at Tuesday's close. It was bid at R9.5481 to the euro from R9.5098 before and at R11.4730 against the sterling from R11.4043 at its previous close.

The euro was bid at $1.2997 from $1.2988 overnight.

A local dealer said: "It has quietened down this afternoon, with the local currency trading in a range. We need to break R7.37 against the dollar to see any real movement," she said.

Dow Jones Newswires reports that a recent string of worse-than-expected US data have drawn investor attention to the US economy, taking the focus off the eurozone's sovereign-debt worries and allowing the euro to hover recently around $1.30.

"US data may not be helpful for the dollar near-term," said Brown Brothers Harriman analysts.

Demand for US manufactured durable goods slid in June for a second consecutive month in another sign the manufacturing sector expansion is slowing.

Worry over the US economy taking a downturn is weighing on the dollar, Wilkinson said. Investors will pour over the Federal Reserve's Beige Book, to be released at 2 p.m. EDT, for another assessment of the US recovery from the perspective of the regional Fed banks.

  - I-Net Bridge

 
 
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