Rand little changed in morning trade

The rand was little changed from its overnight levels and trading in a narrow range in opening trade on Thursday, with little movement expected in the local currency for the remainder of today owing to a dearth of fresh news to provide any clear direction.

At 8.50am local time the rand was bid at R7.27 to the dollar, R9.56 to the euro and R11.52 to the pound. The euro was bid at $1.3125 from $1.3223 overnight.

RMB analysts said in a morning report that speaking to many clients it's interesting that many have been shaken by the ANC's suggestion of a tax on capital inflows. But it's clear that this isn't going to hit any time soon. While the ANC's National General Council will discuss the matter in late September, officials have stated that thereafter there will be rounds of discussions etc, the analysts pointed out.

Meanwhile, Dow Jones Newswires reported that the dollar fell against the yen in Asia on Thursday as Japan's exporters sold the currency after it rallied last night amid receding concern over the pace of the U.S. economic recovery.