Rand backtracks on stronger $

Johannesburg - The rand continued its soft run in the afternoon session on Thursday, as a result of a stronger dollar and a weaker euro, while the gold price came off its record highs of yesterday.

At 15:34 the rand was bid at 7.5351 to the dollar from 7.4368 at its previous close. It was bid at 11.2070 to the euro from its previous close of 11.1196 and was at 12.5405 against sterling from 12.4267.

The euro was bid at $1.4872 from $1.4961 overnight.

A local currency trader said: "Dollar strength is on the back of a weaker euro. We are seeing good offers at 7.60, with resistance at 7.55 against the dollar."

Dow Jones Newswires reported that retreating equities and a decline in the price of gold from its recent record high helped to lift the dollar in Europe on Thursday.

Major currencies remained locked in recent trading ranges, with financial markets still showing uncertainty about the state of the global recovery.

The euro appeared to come under the most selling pressure against the dollar after it again failed to puncture resistance at $1.50 - a level through which it has been trying to make a sustained break since late last month.

There was little fresh news out of Asia but the price of gold fell back quite sharply from its recent record high near $1 153 an ounce, and most equity markets declined.

The market focus will probably now shift to the US jobless claims data later in the day to see if weekly claims rise by only 4 000 as expected.

The pound remained down against the dollar after retail sales rose by only 0.4% last month. The market had been hoping for an acceleration to 0.6% after September's 0.5% rise.

- I-Net Bridge