Rand weaker against Dollar
Rand
JOHANNESBURG? – South Africa’s rand was trading on the back foot against the dollar on Friday, holding around a key support level in what was expected to be a quiet session.
Stock futures pointed to a slightly lower open on the bourse, with the JSE’s blue chip Top-40 December futures contract down 0.25 percent before the start of trade at 0700 GMT.
The rand has support around 7.085, a low tested in late October and mid September.
Traders see two consecutive closes above 7.05 would be confirmation of a true break of the support, opening up 7.10/7.12 as the next key level.
By 0637 GMT, the local currency was trading at 7.0825 to the dollar, 0.68 percent weaker compared with its close of 7.0350 on Thursday.
“The rand seems to have stabilised round about the 7.05 levels, I think under a bit of pressure still as a result of the dollar that’s strengthened against the euro,” said Craig Zaayman, managing director at Purple Capital Treasury.
“I reckon during the day we can target a 7.05 level with a bias to weaken.”
The dealer added rand volatility during the week had been driven by local factors such as weak GDP data and government proposals to boost growth. However the market was now taking cues from the euro/dollar movements focused on the euro zone debt issue.
Dealers expect a thin trading session with the U.S. market open for only half the day after a full day off on Thursday. The local calendar is empty until Monday when credit numbers are due.
(Reuters)
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