Fin24

Flat rand eyes US fiscal deficit

2012-11-08 09:23

Johannesburg – The rand showed little change against the dollar on Thursday morning from its close on Wednesday‚ as the global focus on the US fiscal deficit undermined positive news from Greece.

“Even though the Greek parliament did ratify the austerity measures that are required to obtain further funding from the International Monetary Fund and European Central Bank‚ global risk appetite remains strained because participants are focusing again on the US fiscal deficit‚” Absa Capital said in a note.

At 08:42‚ the rand was bid at R8.6337/$ from Wednesday’s close of R8.6375. It was bid at R11.0245/€ from its previous close of R11.0120 and at R13.7984/£ from R13.7892 before.

The euro was bid at $1.2771 from Wednesday’s close of $1.2755.

“Rand bulls initially cheered President Barack Obama’s victory‚ because the outcome implied that the Fed would continue to flood the market with liquidity that would in all likelihood be directed towards risky assets such as an emerging market and commodity based currency like the rand‚” Absa Capital said.