The rand weakened against the US dollar on Tuesday morning as thin trading conditions continue to weigh on the local currency.
“Trading activity still appears to be slower than normal – local participants are gradually returning to work from their summer vacations‚ with domestic schools starting to reopen from tomorrow until mid-January. But until volume normalises‚ there is still a risk of some sharp moves in the spot rate due to the illiquid trading conditions‚” Absa Capital said in a note on Tuesday.
At 8.19am‚ the rand was bid at R8.5689 to the US dollar from its previous close of R8.5648 on Monday. The local currency was bid at R11.2475 to the euro from its previous close of R11.2337 and at R13.7909 against sterling from R13.8036 before.
The euro was bid at $1.3124 from its overnight close of $1.3123.
“While on the one hand the slightly weaker dollar environment should ordinarily inspire rand bulls‚ the fresh wave of domestic labour tensions‚ combined with yesterday’s profit-taking on the JSE‚ could stymie rand strength in the near term‚” Absa Capital said. - I-Net Bridge