The rand was little changed in early trade on Tuesday from its overnight closing levels but a touch weaker from late trade on Monday‚ as dealers looked to international markets for direction.
At 8.40am‚ the rand was bid at R8.8451 to the US dollar from Monday’s close of R8.8498 and compared with R8.81 ata round 6pm on Monday.
The local currency was bid at R11.3096 to the euro from its previous close of R11.2928 and at R14.0716 against sterling from R14.0554 before.
The euro was bid at $1.2788‚from Monday’s close of $1.2766.
The rand enjoyed extended short covering on Monday on the back of improved global sentiment‚ higher commodity prices and a weaker US dollar environment‚ said Absa analysts in a note.
“Even though we are still confident that the rand can retrace to the 8.75/USD level by month end‚ we are aware that a weak US housing print this afternoon‚ more disappointing news out of Europe‚ a higher-than-expected local CPI release or an exceptionally dovish MPC statement could hinder an extended ZAR recovery in the near term‚” they said. - I-Net Bridge