OWN CORRESPONDENT, Johannesburg | Monday 4.30pm.
THE rand slid again on Monday afternoon, hit by fresh weakness in the euro and offshore selling in New York as US players returned to the market after triggering a slide in the local currency to record lows last week. The rand was last trading at R6,98 to dollar after failing to break key resistance at around R6,93 earlier in the day. Traders see the currency back near lifetime low of R7,03 to the dollar in the near-term. ”I think that the rand is undervalued at these levels but it looks like it’s going to weaken again and hit seven in the short term…I think that you are going to struggle to find a foreign investor in Africa at this time,” one dealer said. The euro looked shaky again after overnight recovery. It slipped back below the key $0,90 level after statements from European finance ministers which signalled that the European central bank would not intervene to support the single currency. An earlier rally by the rand pulled shares on the JSE from flat to firm.
Resources — which have benefitted from rand weakness as much of the commodities sector is export-oriented with dollar earnings — put in gains, led by forestry giant Sappi, which soared 6,40% to R58,20 on the back of stellar interim results. The resources index was last up 1,15%.
The overall marketed ended 0,43% higher, despite thin trade on the day. Both the gold and financial boards took knocks on the day, dipping 1,65% and 1,47% respectively. — additional reports by Reuters