The rand was stuck in a very narrow range against the dollar in late morning trade on Friday in a quiet, flow-driven market. Currency traders expected the rand to remain range bound for the rest of the day.
At 11h31, the rand was quoted at 6,676 to the dollar from a New York close of 6,601 on Thursday and 6,138 on Wednesday. It was quoted at 8,336 to the euro from Thursday’s 8,479 and at 12,082 against sterling from a previous 12,270.
The euro was quoted at $1,2350 from $1,2390 late on Thursday in New York and $1,2237 late on Wednesday, while gold was quoted at $410 an ounce from a previous $411,38/oz.
“It is very quiet. We have seen a couple of exporters and a couple of importers — it is a typical Friday lacking direction,” a currency trader said.
He added that the euro was weakening a bit, which could push the rand slightly weaker, but this was unlikely to be a train smash.
“The rand has been trading in a very tight 6,64-6,67 range. I don’t think it will do much unless there is importer demand, which could push it above 6,70 later on.
The rand could also weaken if there is a big fall in the euro,” the trader concluded.
The rand tends to follow the euro because the Eurozone is South Africa’s largest trading partner. – I-Net Bridge