Money SA economy
The rand hit the top end of its trading range against the dollar in early trade on Wednesday due to a weaker euro and technical forces, which combined to push it weaker.
At 9.02am local time the rand was bid at R7.27 to the dollar, R9.47 to the euro and R11.51 to the pound. The euro was bid at $1.3043 from $1.3184 overnight.
RMB analysts said in a morning report that the rand had reversed gains in line with the euro-dollar, but it is also hitting strong resistance.
"It has now been almost a week that the R7.20 level has held and the longer this goes on the tougher a break becomes. Event risk is limited right through to Friday and the core view is for USD/ZAR to trade flat in its R7.20-R7.28/30 band. Meaningful risks come from potential further euro-dollar volatility as the markets try and suss out the Fed's new policy."
The Federal Reserve in the US has downgraded its outlook on the economy.
