Fin24

Rand weaker on negative global sentiment

2012-11-21 13:08

Johannesburg – The rand was softer at noon on Wednesday‚ albeit off its intra-day lows‚ due to negative global risk sentiment after the eurozone finance ministers failed to agree on a debt-reduction package for Greece.

“The rand is weaker in line with broader risk-off sentiment and we expect it to trade in the R8.82 to R9.00 rand range to the greenback for the rest of the week‚” said Duncan Howes‚ currency trader at Absa Capital.

“The CPI figure had no direct influence on the rand because it was broadly in line with expectations‚” he said.

SA’s consumer price index (CPI)‚ which the Reserve Bank uses to target inflation‚ increased by 5.6% year on year in October from 5.5% year on year in September‚ Statistics SA (Stats SA) said on Wednesday.

At 11:49‚ the rand was bid at R8.9011/$ from Tuesday’s close of R8.8451. The local currency was bid at R11.3805/€ from its previous close of R11.3292 and at R14.1681 against sterling from R14.0770 before. The euro was bid at $1.2787‚ from Monday’s close of $1.2812.