Money SA economy
Improved risk appetite amid higher commodity prices and news from China of greater forex flexibility saw the South African rand on the front foot in midday trade on Monday.
However, good importer demand for a weaker greenback was capping the local currency's gains.
At 11.50am the rand was bid at R7.44 to the dollar, R9.21 to the euro and R11.06 to the pound. The euro was bid at $1.2402 from $1.2388 overnight.
"The rand remains on the front foot and it's likely to remain strong but there is a lot of importer demand which is impeding it from making further gains," a local currency trader said.
RMB analysts said in their morning report that China's announcement of a move toward greater currency flexibility yesterday is a mild positive for the ZAR, given the boost to commodity prices, the reduced risk of a trade spat, its negative implications for the USD and the hope for the rebalancing of the global economy.
