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Rand in a range, amid gold bounce

Nov 20 2009 11:52

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Johannesburg - The rand remained range bound in the midday session on Friday amid a firmer gold price.

At 11:32 the rand was bid at 7.5060 to the dollar from 7.5222 at its previous close. It was bid at 11.1970 to the euro from its previous close of 11.2325 and was at 12.4333 against sterling from 12.5395.

The euro was bid at $1.4891 from $1.4914 overnight. Gold was last quoted at $1 144.40/oz.

A local trader said: "We are still range bound in a 7.47-7.58 level. Gold is higher and the euro has gained a fraction."

Earlier RMB analysts John Cairns and Nema Ramkhelawan noted in a morning report: "Although euro/US dollar remains buoyant at 1.49 it does not appear to have the energy to conquer 1.50. The rand remains trapped in a narrow range as volatility remains depressed. A lack of event risk suggests that it is likely to remain elevated above 7.50 today."

Dow Jones Newswires said that the dollar was holding on to some of the gains made in New York, but trade was muted due to reluctance to take large positions ahead of the three-day weekend in Japan. Analysts also said the greenback's gains on Thursday were not as strong as the pull back in risk appetite suggested they should be.

The dollar's rally "left much to be desired", said David Watt, senior currency strategist at RBC Capital Markets. "The confluence of events should have supercharged dollar (though its gains) are startlingly unremarkable," he said.

At 08:55 GMT, the euro was at $1.4905 compared with $1.4925 in late New York trade.

- I-Net Bridge

 
 
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