ALAN FINLAY & Reuters, Johannesburg | Thursday 4.30pm.
THE rand has eased back to the R7 to the dollar mark for the first time in a week, after the currency failed to take inspiration from a firmer euro.
The currency strengthened somewhat in midday trade to be last bid at R6,98 to the dollar but by 4.15pm it was back at the R7 mark.
Analysts said sentiment was dented by South African Chamber of Business comments on Wednesday which cast doubt on the central bank’s ability to meet its inflation targets.
They also pointed to Zimbabwe’s ongoing political crisis, concerns about the sustainability of the country’s bulging trade surplus, and capital outflows.
Dealers said they expected the move and anticipate that they expect the rand to find a firmer footing on Friday.
Markets ended mixed on Thursday, the overall 0,21% or 16 points up, with industrials 0,40% or 33 points in positive territory. Financials finished lower 0,41% or 39 points.
Despite a stronger gold price, with bullion trading at $286,20 an ounce on international markets, gold shares ended sharply lower 2,13% or 22 points.
The Hang-Seng closed 0,15% or 23 points weaker, and the Nikkei down 0,82% or 140 points. By late afternoon the Dow Jones was 1,20% or 129 points down.