Money SA economy
The rand was steady in late trade on Tuesday having recouped some earlier losses as it tracked the euro which received a boost from a well-supported auction of Greek Treasury bills.
At 3.40pm the rand was bid at R7.25 to the dollar, R9.89 to the euro and R11.21 to the pound. The euro was bid at $1.3611 from $1.3592 previously.
RMB currency analysts said in their monthly currency outlook on Tuesday that the global economic recovery continues to take shape, supporting continuous flows into emerging markets and persistent strength in the rand.
"Though USD/ZAR has exhibited stability, other crosses notably EUR/ZAR, have seen more sustained moves owing to volatility in the dollar majors. The ZAR's enduring strength was cited as an underlying reason for the SARB's decision to reduce the repo rate by 50bp and it now seems plausible that further gains may provoke another cut."
Dow Jones Newswires reported that euro gained slightly against the dollar Tuesday but dropped from its overnight high after failing to sustain the momentum it gained from a strong sale of Greek Treasury bills.
Meanwhile, the pound got a lift from strong data. Its global trade deficit for February narrowed more than expected, hitting its lowest level in nearly four years, and exports rose at their fastest pace since 2003. Sterling gained more than 0.3% on the dollar by morning trading.
