Money SA economy
The rand traded in a tight range in the afternoon session on Wednesday, with a local trader noting a less volatile day compared with recent trading days.
At 3.47pm the rand was bid at R7.47 to the dollar, R9.47 to the euro and R11.10 to the pound.
A local trader said: "We may see the local currency weaken against the US dollar tomorrow if the MPC decides to cut rates, which is unlikely."
South Africa's repo rate is expected to remain unchanged at 6.5% when the decision is announced on Thursday, according to a survey of 11 leading economists.
Earlier a trader noted that the rand had been boosted by rumours that Standard Chartered was poised to make a bid for Nedbank had boosted the rand.
Sky News was reporting that Standard Chartered, the emerging markets bank, is plotting a multi-billion pound takeover of Nedbank. The Sky report added that talks have already taken place between Standard Chartered and Nedbank, but these are at an early stage. Both parties said that they do not comment on market rumours.
Meanwhile, Dow Jones Newswires reports that the UK pound weakened on Wednesday, unable to hold on to levels over the key $1.50 mark, as investor exuberance over a new coalition government turned to concern over the stressed budget those new leaders face.
