Money SA economy
The South African rand strengthened on the back of a firmer euro in early trade on Thursday. Traders said the rand was also being supported by a strong performance from the Dow and firmer commodities prices.
At 08.50am local time the rand was bid at R7.56 to the dollar, R9.58 to the euro and R11.51 to the pound. The euro was bid at $1.256 from $1.2631 overnight.
A local trader said that the local currency followed the euro stronger on the back of solid performance on the Dow as well as firmer commodities, especially precious metals, and a decrease in risk aversion.
"The currency broke through the crucial R7.62/$ support level and we expect it to trade within a band of between 7.55 - 7.62 to the dollar."
Overnight the Dow Jones Industrial Average posted its biggest one-day gain since May 27, rising 2.8% to 10 018.28, taking it back above the key 10 000-point level.
RMB analysts said in their morning report that the rand has been a bit slow to reflect the improved mood and both USD/ZAR and EUR/ZAR have scope for some further downside today.
Dow Jones Newswires reported that strong Australian jobs data brightened the country's economic outlook and increased the market's risk tolerance, helping lift the euro to almost a two-month high against the dollar in Asia Thursday.
