The South African rand was steady against major currencies in late morning trade on Monday in a market that was extremely quiet due to holidays in the UK and US.
Currency traders expected the rand to remain range bound for the rest of
the day.
At 1146, the rand was trading at 7,8900 to the dollar from a New York close of 7,8850. It was also little changed against the euro at 9,3231 from a previous 9,3223, but a tad weaker against sterling at 12,9400 from Friday’s 12,8905.
The euro was quoted at $1,1819 from $1,1829 late on Friday in New York, while gold was quoted at $369,90 an ounce from a previous $368,25/oz.
“There is nothing happening. With London and New York out today, the currency market is sleeping and the rand has been trading between 7,89 and just over 7,91 for most of the morning,” a currency trader said.
Monday is a bank holiday in the UK, while the US is celebrating Memorial Day.
“At lunch time, we might see a few exporters coming in, taking the rand slightly stronger, but then we should see demand for dollars again. I think we will see a 7,87 to 7,92 range for the rest of the day,” the trader concluded.
Dow Jones Newswires reports that the euro was within striking distance on Monday of its record high against the dollar, and could make an assault on that $1,1884 level if traders decide to take advantage of the thin trading conditions resulting from the UK and US holidays.
Brief pullbacks notwithstanding, the single currency’s upward momentum appears unstoppable just now, despite the pain it’s causing euro-zone exporters, and growing frustration with the European Central Bank’s tardiness in cutting interest rates to give the sluggish euro-zone economy a lifeline. – I-Net Bridge