Money SA economy
The rand remained on the front foot in early trade, little changed from its overnight levels with a currency trader pointing to a more consolidatory period in the local market.
At 08.58am the rand was bid at R7.50 to the dollar from R7.48 at its previous close. It was bid at R10.27 to the euro and R11.30 to the pound. The euro was bid at $1.3651 from $1.3700 previously.
A local trader said: "The euro has come off its highs, but the rand refuses to break 10.26 against the euro. The rand is looking to consolidate, in the range of 7.48-56 against the dollar."
In their morning commentary, RMB analysts noted that a stronger rand is certainly justified by the better news out of Greece, the rise in commodity prices and the stability in global equities. With US dollar/rand 7.5650/5800 having been broken technically it is now open for moves to 7.47.
"Some caution is, however, warranted. The rand is running ahead of its compatriot currencies. We wonder if tomorrow's SARB reserve data will show that they have been more active in the market.
More importantly, everything is dependent on the Greek story. You might be sick of it but the underlying reality is that this still remains the dominant theme for all of us.”
Dow Jones Newswires meanwhile reported that the euro edged lower against the dollar in Asia on Thursday as US and European banks took profits after the euro hit a two-week high overnight.
