The rand strengthened on Wednesday morning as the euro gathered pace despite concern about Greece‚ while US President Barack Obama’s re-election added pressure on the US dollar.
“Although broad-based euro weakness‚ driven by renewed concern about Greece‚ pushed euro/rand lower for most of Tuesday’s session‚ the rand has also managed not to weaken even though the euro has started strengthening again‚” Absa Capital said in a note.
At 8.23am‚ the rand was bid at R8.6153 to the US dollar from Tuesday’s close of R8.6333. It was bid at R11.0775 to the euro from its previous close of R11.0521 and at R13.8001 against sterling from R13.8043 before.
The euro was bid at $1.2869 from Tuesday’s close of $1.2806.
“Although we still expect renewable energy-related FX hedging to take place over the coming weeks‚ and remain constructive about the euro across the board over the coming months‚ especially in light of President Obama’s re-election‚ rand bears seem to be running out of steam‚” Absa Capital said. - Reuters