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Johannesburg – The South African rand was a fraction softer in midday trade on Friday, with a trader noting that the local currency failed to react to news that British banking group HSBC has ended talks on a potential offer for Nedbank (NED).
London and Johannesburg-listed international long-term savings, protection and investment group Old Mutual plc (OML), announced on Friday that HSBC had informed the group that it would not proceed with a partial offer for Nedbank [JSE:NED] following the expiry of the agreed exclusivity period.
Consequently, Old Mutual said, it was no longer in discussions with HSBC concerning its 52% shareholding in Nedbank.
By 11:40 local time the rand was bid at 6.7860 to the dollar from 6.7657 at the previous close. It was bid at 9.5766 to the euro from 9.5363 before and at 10.8963 against sterling from 10.8392 at its previous close.
The euro was bid at US$1.4086 from $1.4069 overnight.
A local dealer said: "The rand changed very little on the Nedbank news, it was less than a cent. We might see some traders coming in and covering short positions, but the news has been out for a while now.
"The euro continues to test 1.41 against the dollar, while Ben Bernanke's speech is likely to drive direction either way," he said.
Jones Newswires reports that the dollar resumed falls in European trading Friday after a slight recovery in Asian hours, as market participants awaited a speech from Federal Reserve chairman, Ben Bernanke.
The speech, slated for 1215 GMT, is being closely watched by foreign exchange traders for further confirmation that the Fed will embark on another round of bond purchases to support the economy at its next meeting Nov 3 - a theme that has hit the dollar hard in recent weeks.
Further details on the likely scale and timing of any further quantitative easing could push the dollar lower. However, some market-watchers warn that the dollar's falls reflect the full extent of these concerns.
In the run up to Bernanke's speech, the dollar is close to its weakest levels against the euro since January, and chances of rebound look slim.
"There will come a time when the market will look at the euro and its current and prospective deficiencies and marvel at how it ever got to this level," said Daragh Maher, a senior currencies analyst at Credit Agricole in London. "That time is not now," he said.
London and Johannesburg-listed international long-term savings, protection and investment group Old Mutual plc (OML), announced on Friday that HSBC had informed the group that it would not proceed with a partial offer for Nedbank [JSE:NED] following the expiry of the agreed exclusivity period.
Consequently, Old Mutual said, it was no longer in discussions with HSBC concerning its 52% shareholding in Nedbank.
By 11:40 local time the rand was bid at 6.7860 to the dollar from 6.7657 at the previous close. It was bid at 9.5766 to the euro from 9.5363 before and at 10.8963 against sterling from 10.8392 at its previous close.
The euro was bid at US$1.4086 from $1.4069 overnight.
A local dealer said: "The rand changed very little on the Nedbank news, it was less than a cent. We might see some traders coming in and covering short positions, but the news has been out for a while now.
"The euro continues to test 1.41 against the dollar, while Ben Bernanke's speech is likely to drive direction either way," he said.
Jones Newswires reports that the dollar resumed falls in European trading Friday after a slight recovery in Asian hours, as market participants awaited a speech from Federal Reserve chairman, Ben Bernanke.
The speech, slated for 1215 GMT, is being closely watched by foreign exchange traders for further confirmation that the Fed will embark on another round of bond purchases to support the economy at its next meeting Nov 3 - a theme that has hit the dollar hard in recent weeks.
Further details on the likely scale and timing of any further quantitative easing could push the dollar lower. However, some market-watchers warn that the dollar's falls reflect the full extent of these concerns.
In the run up to Bernanke's speech, the dollar is close to its weakest levels against the euro since January, and chances of rebound look slim.
"There will come a time when the market will look at the euro and its current and prospective deficiencies and marvel at how it ever got to this level," said Daragh Maher, a senior currencies analyst at Credit Agricole in London. "That time is not now," he said.
