South Africa’s rand dropped yesterday and came under more pressure in the overnight market after investors lost their appetite for riskier assets. The local unit is currently trading above the 7.90/$ mark, we should see exporter interest close to 8.00/$ however if the negative sentiment continue a test of 8.00/$ will be seen. While scenes of destruction are shown worldwide due to the strike we should not expect the local unit to rally any time soon.
The dollar drifted sideways against a basket of currencies on Wednesday, hovering not far from the lowest level of the year, as investors awaited fresh leads from coming economic events in the United States. The euro held firm against the dollar but stayed shy of Tuesday’s eight-week high after news of weaker-than-expected consumer confidence in the United Stated prompted investors to cut long positions in the European currency. Major currencies were largely confined in ranges in Asian trade as investors remained cautious about a recent rapid rise in assets such as stocks and commodity prices.
Current levels
Rand / Usd
7.9000-7.9500
Rand / Euro
11.2000-11.2500
Rand / Sterling
12.9800-13.0300
Jpy / Rand
11.83-11.88
Jpy / Usd
94.15
Usd / Euro
1.4126
Gbp / Usd
1.6360
Gold
$935.00
Brent
$69.36
Expected ranges
Rand / Usd
7.8500-8.0500
Rand / Euro
11.1500-11.3500
Rand / Sterling
12.9000-13.1000
Jpy / Rand
11.75-11.95