The South African rand was firm against the major currencies in quiet early trade on Monday. On Friday the rand reached its best level since January 1999 when it touched 5,8850 rand per US dollar in late after-hours trade.
At 9am, the rand was quoted at 5,9413 per dollar from an overnight close of 5,9496 on Friday, 6,1001 on Thursday and 6,0651 on Wednesday. It was quoted at 7,3891 to the euro from a previous 7,3849 and at 11,1190 from Friday’s 11,150.
The euro was quoted at $1,2438 from $1,2446 late on Friday, while gold was quoted at $407,75 an ounce from a previous $406.10/oz.
The rand tends to follow the euro because the Eurozone is South Africa’s largest trading partner.
“The rand looks as if it wants to move firmer, but it is still too early to tell, as most players are still having their strategy sessions,” a currency trader said.
The rand is not the only so-called commodity currency gaining against the US dollar as the Australian dollar reached a nine-week best level last week. – I-Net Bridge