Money SA economy
The rand was steady at its softer levels of late in early trade Thursday. The rand weakened around 10 cents on Wednesday despite a stronger euro.
At 8.25am the rand was bid at R7.32 to the dollar from R7.30 at its previous close. It was bid at R9.98 to the euro and R11.31 to the pound. The euro was bid at $1.3636 from $1.3655 previously.
A local trader said the rand's softer tone against the dollar could partly be explained by the rand/euro's move above 10 on Wednesday afternoon.
"But we are still in ranges. It will have to move above 7.34 on the upside to become interesting, with 7.27 to 7.34 likely to be the range for today," he said. RMB analysts in their morning report noted that the rand's move weaker was not due to offshore factors, as the euro was firmer.
"Reports suggest strong model buying and importer demand but the more intriguing view is that the weakness followed the fresh betting of another rate cut, which followed the weak retail sales data. If it's the rate view that's weakening the ZAR then the SARB can take heart - maybe their actions will get the desired result," they said.
