• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Rand weakens on dollar strength

Jan 07 2013 09:22
I-Net Bridge

Johannesburg – The rand weakened against the US dollar on Monday morning as traders reacted to comments from the US Federal Open Markets Committee (FOMC). 

“While the skirting of the US fiscal cliff caused high-beta currencies such as the rand to enjoy a relief rally at the year’s outset‚ the dollar has since strengthened on the back of the release of some hawkish FOMC minutes‚” Absa Capital said in a note. 

At 8.27am‚ the rand was bid at R8.6043 to the US dollar from its previous close of R8.5549 on Friday. The local currency was bid at R11.2133 to the euro from its previous close of R11.1773 and at R13.7750 against sterling from R13.7532 before. 

The euro was bid at $1.3034 from its overnight close of $1.3067. 

“Our month-end target still stands at R8.60/$ and we also still believe the rand could strengthen to R8.20/$ by year-end‚ partly because the worst of the idiosyncratic risks (strike activity‚ political uncertainty surrounding the elective conference‚ current account deficit) that plagued it during the fourth quarter of 2012 are likely to be behind us and also because the improving growth outlook in the US and China should be supportive of risk appetite as the year progresses‚” the bank said.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

rand  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote