Data provided by iNet BFA
Loading...
See More

Rand weakens on dollar strength

Jan 07 2013 09:22 I-Net Bridge

(Supplied)

Related Articles

Rand weakens on softer euro

Rand weakens on imports

Rand weakens in muted trade

Rand weakens in post-rally correction

Rand flat after US averts fiscal cliff

Rand slips in tandem with euro decline

 

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
NEXT ON FIN24X

 
 
 

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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Where can you stash your cash?

Fin24 user Tinashe Guramatunhu presents a review of the best way to invest a windfall or bonus.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

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