Money SA economy
The rand was firmer than levels seen late Wednesday versus the dollar, despite a weak euro.
At 9.07am the rand was bid at R7.38 to the dollar, R9.92 to the euro and R11.42 to the pound. The euro was bid at $1.3409 from $1.3388 previously.
RMB analysts said in their morning report that the EUR/USD slid below 1.34 yesterday as Greek borrowing costs surged to unprecedented levels, emphasising intense market uncertainty.
"A drag on global growth, which the IMF now estimates at 4.2% for 2010, could provoke safe-haven purchases of USD-denominated assets and dim the allure emerging market currencies such as the ZAR, which continues to revel in the global recovery," they said.
For now, the USD/ZAR is pivoted around 7.40 and seems relatively immune to the fall-out in EUR/USD but could exhibit increased volatility should the Greek situation continue to deteriorate, RMB added.
On the local front, markets will eye Reserve Bank Governor's speech to the BER's economic conference in Sandton for any clues as to the direction to interest rates.
Dow Jones Newswires reported that the yen is rallying against major currencies, including the euro, sterling and dollar, as stock markets sink on earnings disappointment.
