The volatile rand remained range bound in midday trade on Thursday‚ tracking global markets which firmed on improved sentiment on the eurozone debt and Spanish banks crises.
At 11:54 the rand was bid at R8.3091 to the dollar from Wednesday’s close of R8.3026. It was bid at R10.4538 to the euro from its previous close of R10.4397 on Wednesday and at R12.8860 against sterling from R12.8583 at its previous close. The euro was bid at US$1.2588from Wednesday’s close of $1.2572.
“It has been mostly quiet‚ the market has gradually come back after a few days’ volatility. This doesn’t mean the risk has been averted‚ the problem is that none of the meetings held in the past few days came up with something concrete on tackling the eurozone problems‚” a local trader said.
RMB said it had adjusted its rand forecasts to reflect the renewed eurozone stresses.
“We now expect high rand volatility over the next quarter‚ with dollar/rand trading in a range of as much as 8.00–9.00. Risks over this period are to the topside. We expect the trend for rand gains to re-emerge when the eurozone tensions settle down‚ perhaps in the fourth quarter of 2012.”
Standard Bank also reiterated that the recent volatility would remain a feature for as long as markets remained uncertain over the future of the eurozone‚ with the upcoming Greek elections a particular focus. - I-Net Bridge