South Africa’s rand traded in a 7.75/$ to 7.85/$ trading range on Friday as economic releases had no impact on the currency markets. The euro and pound is stronger versus the dollar this morning which pushed the rand back below 7.80/$. However reports by the Business Day that MTN and Bharti will report back today with progress on talks and also give more detail of the actual deal will help us see what flows will come into the local market. Most traders will be sidelined until they get more info as the deal has been driving the rand lately.
The dollar fell broadly on Monday and hit its lowest point this year against a basket of currencies after higher oil prices, steady global stock markets and U.S. GDP data boosted investments in riskier assets. The Australian dollar, a commodity-linked currency, climbed to a 10-month high versus the dollar, helped partly by oil prices holding firm around $70 a barrel CLc1 in Asian trade after jumping nearly 4 percent late last week. Commodity prices rose on Friday as data showing U.S. gross domestic product for the second quarter fell at a 1.0 percent annual rate, below analysts’ expectations for a 1.5 percent drop, raising hopes that fuel demand would recover. The dollar’s slide was driven largely by technical factors such as stop-loss buying in sterling, which hit its highest level in nine-months, traders said.
Current levels
Rand / Usd
7.7500-7.8000
Rand / Euro
11.0000-11.0500
Rand / Sterling
12.9800-13.0300
Jpy / Rand
11.0000-11.0500
Jpy / Usd
94.88
Usd / Euro
1.4225
Gbp / Usd
1.6742
Gold
$952.00
Brent
$72.34
Expected ranges
Rand / Usd
7.7000-7.9000
Rand / Euro
10.9500-11.1500
Rand / Sterling
12.9000-13.1000
Jpy / Rand
12.10-12.30