Money SA economy
The rand continued its firm footing in midday trade on the back of rumours out of the UK, that HSBC and Standard Chartered were in talks to take over South African banking group, Nedbank.
The Financial Times of London reported that two British banks were in talks with Old Mutual regarding its 52% stake in Nedbank. It follows a similar rumour in May, reported by Sky News.
At 11.49am local time the rand was bid at R7.37 to the dollar, R9.54 to the euro and R11.44 to the pound. The euro was bid at $1.2901 from $1.2886 overnight.
A local dealer said: "The rand's strength is on the back of the Nedbank rumour. The local currency is well bid at 7.33-34 against the dollar, until we get any further news on Nedbank."
RMB analysts said in a morning report that the initial reaction to the EU bank stress tests released late Friday was relief - US markets pushed up quite strongly and EUR/USD rallied, as only seven of the 91 banks failed. They added that the environment was rand friendly.
Dow Jones Newswires reported that euro is a little lower Monday as European bank stress test results, released late Friday, failed to widen sovereign debt yield spreads despite concerns that the tests weren't credible.
