The South African rand remained below R7,00 per dollar in early trade on Wednesday, after breaking this level on Tuesday for the first time in three years. While currency traders said there might be a bit of profit taking, dollar sales were
helping the rand retain its robust tone.
At 08.44am, the rand was trading at R6,9225 to the dollar from a New York close of R6,9526. It was quoted at 8,0726 to the euro from a previous R8,0727 and at R11,4991 against sterling from Tuesday’s R11,5162.
The euro was quoted at $1,1678 from $1,1652 late on Tuesday in New York, while gold was quoted at $384,75 an ounce from a previous $385,25/oz.
Tuesday’s move started on the back of a stronger euro and gained momentum when stop losses were triggered at the R7,05 per dollar level, which was previously this year’s best level.
”It still looks like there is more of the same. People still want to sell [dollars],” a currency trader said. ”We have a feeing there might shortly be a bit of a pullback and we will have to see it holds below R7,00. If it does it will be an excellent find for the rand.”
He continued that R6,86 — the rand’s best level on Tuesday — was the next chart point, while R6,98 to R7 would likely form the top of the rand’s range for the day.
Dow Jones Newswires reports that the dollar remained steady against the yen in Asia on Wednesday, as a much-anticipated survey showing an improvement in Japanese business sentiment was overshadowed by concerns of further intervention by Japan’s currency authorities. – I-Net Bridge