Money SA economy
The rand was trapped in a tight range in afternoon trade, "going nowhere in a hurry," according to a local trader as markets await clarity on a potential deal between financial services group Old Mutual and HSBC Holdings plc, to acquire a controlling shareholding in Nedbank Group.
At 3.38pm local time the rand was bid at R7.29 to the dollar, R9.28 to the euro and R11.35 to the pound. The euro was bid at $1.2707, unchanged from overnight.
A local dealer said: "We are going nowhere in a hurry, sitting in a tight range of 7.28-33 against the dollar until further detail on Nedbank, while also keeping an eye on the euro." Old Mutual said Monday that it had received a proposal from HSBC Holdings plc to acquire a controlling shareholding in Nedbank Group. The proposal follows a detailed review by Old Mutual Group of its various options with respect to its shareholding in Nedbank.
Dow Jones Newswires reported that disappointing data has hampered the euro's performance. The euro zone's private sector expanded at a slower pace in August, weighed down by both the manufacturing and services sectors, according to a survey by financial information firm Markit.
