Money SA economy
The rand was softer in midday trade on Wednesday in line with the weaker euro against the US dollar amid risk aversion.
At 11.38am local time the rand was bid at R7.67 to the dollar, R9.64 against the euro and R11.57 to the pound. The euro was bid at $1.2570 from $1.2618 overnight.
"The rand is a bit softer today, tracking the euro which came off against the US dollar on risk aversion. The volumes are fairly low at the moment. The range is 7.64 to 7.72 against the greenback," the dealer said.
Dow Jones Newswires reports that disappointment over the US non-manufacturing Institute of Supply Management (ISM) survey continues to ripple through financial markets on Wednesday, knocking the euro lower but helping the dollar and the yen to re-establish their safe haven positions.
The US ISM fell sharply to 53.8 from 55.4, with the employment and the price measures also showing disappointing declines that called into question the health of the US recovery.
The dollar was also helped by the data as investors shied away from high risk assets and moved back into traditional safe havens.
Although there is some uncertainty over whether this trend will last, the move led the euro to reverse some of its recent gains against the dollar, even though some recent euro zone data have come in better than the market has expected.
