The rand had hardly moved on Monday afternoon‚ trading in a narrow band‚ awaiting the decision of eurozone finance ministers on Greece’s bailout package.
“It is a heavy week for local data with the GDP figures‚ credit extension and trade numbers out. We are trading in the R8.80 to R9.00 to the dollar band. The rand is underperforming other emerging market currencies despite a risk-on environment. Fundamentally the rand is not performing well‚” said Brigid Taylor‚ head of flow sales at Nedbank Capital.
At 3.40pm‚ the rand was bid at R8.8643 to the US dollar from Friday’s close of R8.8616. The local currency was bid at R11.4791 to the euro from its previous close of R11.5180 and at R14.1760 against sterling from R14.2125 before. The euro was bid at $1.2961‚from Friday’s close of $1.2973.
This week sees the usual month-end rush of local economic indicators‚ as well as GDP numbers for the third quarter. The SA Reserve Bank’s leading economic indicator for September and GDP growth results will be published on Tuesday‚ M3 and PSCE and PPI numbers for October on Thursday and preliminary external trade statistics and National Treasury revenue and expenditure numbers for October on Friday. - I-Net Bridge