Money SA economy
The rand maintained its firm footing in morning trade on Tuesday, targeting R7.20 against the greenback ahead of the Fed monetary policy decision, expected later on Tuesday.
At 9.09am local time the rand was bid at R7.21 to the dollar, R9.50 to the euro and R11.39 to the euro. The euro was bid at $1.3169 from $1.3227 overnight.
A local dealer said: "The rand continues to look incredibly strong amid quite a bit off offshore interest. The break below R7.20/$ appears to have inspired bullish pundits. The exact reason for the rand's strength is difficult to pinpoint, however, eyes will turn to the Fed monetary policy decision on Tuesday for further direction," he said.
RMB analysts said in a morning report that the Fed monetary policy decision is set to take centre stage this week.
"Evidence is pretty clear that the US economic recovery is faulting, Friday's employment data being the latest in a string of key indicators to disappoint.
"Markets though are split almost exactly 50-50 on whether we'll see additional stimulus measures today.”
