Money SA economy
The rand came off its intraday worst levels in afternoon trade on Tuesday, however the local currency continues to track a softer euro, having broken firmly out of its 7.25-35 range against the greenback, a trader said.
At 3.34pm local time the rand was bid at R7.35 to the dollar, R9.29 to the euro and R11.35 to the pound. The euro was bid at US$1.2618 from $1.2636 overnight.
A local dealer said: "The rand is soft on the back of a weaker euro, certainly against the dollar. The rand has broken firmly out of the 7.25-35 range against the dollar, but we haven't seen any dramatic moves today, bias is for a softer rand," he said.
Earlier a trader said poor GDP data suggested that there might be a rate cut next week. "The DGP data lends credence to the feeling that we are going to have a rate cut next week," he said, adding that a rate reduction generally signalled rand weakness.
Dow Jones Newswires reported that the euro fell to its lowest level against the dollar in roughly five weeks, and currencies tied to commodities, such as the Australian, New Zealand and Canadian dollars were all down sharply.
