The South African rand was softer against major currencies in late morning trade on Thursday after a move sparked by offshore demand for dollars. However, exporter sales were seen at the weaker levels and currency traders expected a range bound day from the local unit.
At 1147, the rand was trading at 7,4960 to the dollar from a New York close of 7,4455. It was also slightly weaker against the euro at 8,5839 from Wednesday’s 8,5519, while it had retreated almost 10 cents against sterling to trade at 12,4544 from a previous 12,3570.
The euro was quoted at $1,1459 from $1,1529 late on Wednesday in New York, while gold was quoted at $349,65 an ounce from a close of $351/oz.
“Offshore dollar buying took the rand through 7,50 where some stop losses were triggered,” a currency trader said.
However, exporters had come into the market at the 7,55 level, capping the rand’s losses.
The trader expected the rand to remain fairly range bound for the rest of the day.
“I don’t think it will go above 7,57, but I also don’t think it will firm below 7,45,” the trader explained.
On Wednesday, after trading range bound for most of the morning, the South African rand firmed after stop losses were triggered at the 7,40 level. However, it later retraced some of its gains. – I-Net Bridge