Money SA economy
A softer rand traded in a range this morning, tracking the euro ahead of key economic data out this week including SARB's fourth quarter 2009 economic update out later and the MPC rate decision on Thursday.
At 9.11am the rand was bid at R7.35 to the dollar from R7.30 at its previous close. It was bid at R9.93 to the euro and R11.07 to the pound. The euro was bid at $1.3515 from $1.3566 previously.
A local trader said: "The rand is in a range of 7.30-7.40 against the dollar, and is eyeing the euro for any movement away from 1.35 against the greenback."
Absa Capital analysts in their morning report noted a slew of critical economic data out this week, with demand-side GDP numbers (Tuesday), February inflation numbers (Wednesday and Thursday) and the SARB's MPC rate decision (Thursday) presumably the highlights for fixed income markets.
"We continue to believe that the policy rate will remain unchanged on Thursday on the back on a stronger-than-expected economic revival (the SARB's leading indicator released on Wednesday should further support this view) and some evidence that consumer demand is improving. However, markets are currently pricing in around a 30% chance of a rate cut," Absa Capital said.
