Money SA economy
The rand remained resilient overnight in the face of a strong US dollar, as the local unit continued to defy expectations.
A local trader said, however, that the rand has moved above R7.30 this morning, so if that holds he is looking at a range of R7.30-R7.36 to start. At 8.20am local time the rand was bid at R7.29 to the dollar, R9.41 to the euro and R11.45 to the pound. The euro was bid at $1.2902 from $1.2837 overnight.
Traders said that fresh concerns about the global economy were boosting the dollar.
RMB analysts said in a morning report that US equities took the brunt of the concerns, dropping by 2.5% overnight. Asian markets are following suit. "Most importantly, from our perspective, is that the USD had its biggest single day gain in over two years. With risk off and the USD rallying, one would expect the rand to run higher. We did get to $/R7.32 overnight but it's quite extraordinary how strong the rand remains.”
Dow Jones Newswires reported that the euro and sterling are nudging tentatively higher against the dollar on Thursday but all three are lower against the safe-haven yen, which is hurting Japan's export economy.
