Money SA economy
The rand remained firm in early trade this morning, despite worrying news on the international front in the form of lower than expected Japanese GDP data.
At 08:45 local time the rand was bid at R7.28 to the dollar, R9.33 to the euro and R11.28 to the pound. The euro was bid at $1.2810 from $1.2769 overnight.
RMB analysts said in their morning report that while the natural tendency of the rand is to go stronger it seems that the adverse international environment is going to hold it back - at least for the early part of this week. "The latest cause for concern is this morning's second quarter of 2010 Japanese GDP economic growth figure, which at 0.4% q/q annualised came in well below market expectations.”
Dow Jones Newswires reported that the Japanese yen is higher against the U.S. dollar, sterling and the euro Monday, as investors moved into the safe-haven currency in the wake of Japan's weaker-than-expected GDP.
Friday's better-than-expected German and euro-zone growth data have failed to provide lasting gains for the common currency, making some analysts wonder if the euro is set to suffer significant further losses against the dollar.
"The inability to rally on good news is never a good sign," analysts at Scotia Capital wrote in a research note.
