Money SA economy
The rand held its ground on the crosses in morning trade on Wednesday as the euro fell to a fresh four-year low against the dollar.
At 8.57am the rand was bid at R7.63 to the dollar, R9.34 to the euro and R10.95 to the pound. The euro was bid at $1.2213 from $1.2179 previously.
A local trader said: "The market doesn't need surprises at the moment, and that is what happened overnight with news out of Germany. The euro/rand remains stable and for now the rand is in a R7.64-68 range against the dollar."
RMB said in a morning report that further euro/US dollar downside remains the most likely outcome, with euro/rand feeling most of the brunt but with occasional bouts of sharp US dollar/rand upside.
Dow Jones Newswires said the euro fell to a fresh four-year low against the dollar in Asia Wednesday, as investors in the region dumped the common currency on the view that new German financial regulations will complicate managing the risk of holding the currency.
The new rules announced overnight might make both short- and long-term investors increasingly eager to further trim their euro holdings. The regulations are also likely to weigh on European equities later in the global day, further hurting the risk-sensitive currency, dealers said.
