Money SA economy
The South African rand was stuck in a tight range against major currencies in midday trade on Tuesday as the euro rebounded after hitting fresh four-year lows but then slipped back again.
At 12.05pm the rand was bid at R7.80 to the dollar, R9.30 to the euro and R11.24 to the pound. The euro was bid at US$1.1910 from $1.1922 overnight.
With little local data to focus on, the rand will continue to follow the euro, said a local trader.
Dow Jones Newswires reports that the euro rebounded but then slipped back Tuesday as global market sentiment improved in the wake of comments by U.S. Federal Reserve Chairman Ben Bernanke that the U.S. recovery remains on track despite the problems in the euro zone.
The pound also got hit by Fitch Ratings' warning that the U.K.'s fiscal challenge is formidable.
Analysts suggested that the euro's rebound may prove to be little more than a "short squeeze" that will unwind again once more bad news comes in.
