Money SA economy
The rand tracked a softer euro this morning amid further concerns over Greece's fiscal issues.
At 9.16am the rand was bid at R7.25 to the dollar from R7.19 at its previous close. It was bid at R9.71 to the euro and R10.98 to the pound. The euro was bid at $1.3411 from $1.3487 previously.
A local trader said: "The euro has come off and it looks like the rand is set to use that as a base, and track it. If we break 7.28-29 against the dollar we should go higher, but until then we will sit in a range of 7.23-7.28."
RMB analysts said in a morning report that the single most important determinant in the rand's outlook is whether the global economic recovery continues.
"On this front the news is simply excellent - US data over the weekend showed a return to job creation (a 162 000 increase in non-farm payrolls), expansion in both the manufacturing and service industries and a rebound in the housing market," RMB said.
The group said commodities in particular are surging; with oil and platinum hitting post-crisis highs. "Gold is lagging somewhat, which is a minor restraint on a positive rand response.
"Still, US dollar/rand was quoted at just over the 7.20 level in Asian trade and a break through the massive support band at 7.20/23/25 keeps coming closer and closer.”
