Johannesburg – The rand remained little changed in midday trade on Wednesday against a favourable international backdrop and a stronger euro.
RMB Global Markets said in a note that the rand’s recovery had come in the absence of any further negative local news‚ although they warned that the slightest thing could set the market off again.
At 11.59am‚ the rand was bid at R9.0246 to the US dollar after touching R9.1258 on Tuesday and then closing at R9.0208.
The local currency was bid at R12.2011 to the euro from its previous close of R12.1664 and at R14.2063 against sterling from R14.1939 before.
The euro was bid at $1.3529 from Tuesday’s close of $1.3486 and Monday’s close of $1.3447.
RMB said short-term pressures on the domestic currency were to the down side‚ and that R9.00/$ and R8.94/$ were likely to prove tough support.
Only if the currency breaks through both levels‚ should we start to think about a sustained downside move‚ they said. - I-Net Bridge