Steady rand looks to consolidate

A firm rand traded in a range on Wednesday morning, hardly off its overnight levels as it looked to consolidate its strong position, according to a local trader.

At 9.07am local time the rand was bid at R7.25 to the dollar, R9.61 to the euro and R11.57 to the pound. The euro was bid at $1.3217 from $1.3223 overnight.

A trader said: "The rand is trading in a range at the moment, at R7.25/$-R7.35/$ with very little movement either side. It looks like we are in a period of consolidation.”

RMB analysts said in a morning report that with global data pointing to only a moderate economic slowdown and with the US dollar under pressure, the rand should be rallying strongly. "Instead, it is halted in its tracks. US dollar/rand saw dips down towards R7.20 yesterday but remained stuck in the high R7.20's as fears of an inflows tax restricted movement.”

Dow Jones newswires reports that the euro was hardly changed against the dollar.