THE rand was weaker at midday on Friday in cautious trade ahead of the African National Congress’s (ANC’s) national executive council (NEC) meeting at the weekend.
At 11.31am, the rand was trading at R15.3659 to the dollar from R15.1684 at Thursday’s close.
The rand was at R17.3184 against the euro from R17.1615 and at R22.1655 against the pound from R21.9592.
The euro was at $1.1270 from $1.1312.
Earlier in the day the rand had recovered the ground it had lost at the start of the week. Since Monday trade has been volatile, with the currency swinging between R15.0689 and R16.2444.
"But further gains are going to be tough," said Rand Merchant Bank (RMB) analyst John Cairns.
The rand received firm support at between R15/$ and 15.05/$, but was still underperforming its risk-currency peers.
Mr Cairns said there was some justification for a continued political risk premium. "It is highly unlikely that President Jacob Zuma will be recalled at this weekend’s NEC meeting," Mr Cairns said.
Analysts said the weaker dollar also supported the firmer rand, which usually trades inversely to the greenback, notably when commodity prices are also on the rise.
Trading ranges would be influenced by the dollar, with most of the gains on the 25-basis-point rate increase already priced in.
The dollar had weakened to a crucial technical area at about $1.1320 to the euro and over the next two to three sessions this level would take on increased significance, Momentum SP Reid analysts said.
Picture: GALLO IMAGES/FOTO24/LOANNA HOFFMAN
THE rand was weaker at midday on Friday in cautious trade ahead of the African National Congress’s (ANC’s) national executive council (NEC) meeting at the weekend.
At 11.31am, the rand was trading at R15.3659 to the dollar from R15.1684 at Thursday’s close.
The rand was at R17.3184 against the euro from R17.1615 and at R22.1655 against the pound from R21.9592.
The euro was at $1.1270 from $1.1312.
Earlier in the day the rand had recovered the ground it had lost at the start of the week. Since Monday trade has been volatile, with the currency swinging between R15.0689 and R16.2444.
"But further gains are going to be tough," said Rand Merchant Bank (RMB) analyst John Cairns.
The rand received firm support at between R15/$ and 15.05/$, but was still underperforming its risk-currency peers.
Mr Cairns said there was some justification for a continued political risk premium. "It is highly unlikely that President Jacob Zuma will be recalled at this weekend’s NEC meeting," Mr Cairns said.
Analysts said the weaker dollar also supported the firmer rand, which usually trades inversely to the greenback, notably when commodity prices are also on the rise.
Trading ranges would be influenced by the dollar, with most of the gains on the 25-basis-point rate increase already priced in.
The dollar had weakened to a crucial technical area at about $1.1320 to the euro and over the next two to three sessions this level would take on increased significance, Momentum SP Reid analysts said.
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