Money SA economy
The rand strengthened from its early morning levels by noon on the back of a weaker dollar.
At 11.54am the rand was bid at R7.68 to the dollar, R11.40 to the euro and R12.72 to the pound. The euro was bid at $1.4838 from $1.4836 overnight.
"We have had a little dollar weakness, it's nothing major," a trader said. "We are likely to be stuck in a range of 7-68-7.78 for the day.”
Said another trader earlier in the day: "The dollar generally pulled back on the GDP data, the rand benefited and that is why we are pretty much stronger against the dollar. I don't expect much for the day, the market will probably take a breather. I think we are probably reaching the bottom. I think we will stay in a range of about 7.70-7.80-7.82."
RMB analysts John Cairns and Nema Ramkhelawan said that after taking a moment to ponder recent events, investors have returned to the market enthused by the US Commerce Department's confirmation that the world's largest economy emerged from the depths of recession in 3Q09.
"Having weakened to 7.86, the ZAR forged new gains against the USD and recovered to around 7.74 despite dismal local data which showed a continued deterioration in SA's labour market. The local unit should remain elevated above the 7.70 level today given an array of event risk.”
