Money SA economy
The South African rand remained range bound against the major currencies in late afternoon trade on Friday but was weaker against the euro which rose to a two-month high against the dollar.
Naeem Ebrahin, a currency dealer from Standard Bank, attributed the rand's weakness against the euro to reduced fears about the European fiscal deficits. He added that the lingering concerns about the slow pace of the US economic recovery was weighing on the greenback.
The rand was bid at R7.56 to dollar, R9.82 to the euro and R11.63 to the pound. The euro was bid at $1.2972 from $1.2921 overnight.
Dow Jones Newswires reports that the euro rose Friday above the psychologically key $1.30 mark, as concerns over the euro-zone sovereign debt crisis continued to fade to the background amid worry that the U.S. recovery could be slowing.
The euro gained to its highest level against the dollar since May 10 and hovered around those levels after tame U.S. inflation data released Friday was unlikely to change expectations the Fed will hold interest rates at record low levels. Ultralow rates weigh on the dollar.
