The rand was flat on Wednesday morning as traders waited for developments from the dispute in the South African farming sector.
“Even though portfolio inflows to SA have been steady in recent weeks (both to the bond and equity markets)‚ the potential for rand strength is being curtailed by a firmer US dollar environment‚ as well as some renewed domestic labour tensions in the mining and farming sectors‚” Barclays Capital said in a note.
At 8.23am‚ the rand was bid at R8.5698 to the US dollar from its previous close of R8.5733 on Tuesday. The local currency was bid at R11.2150 to the euro‚ unchanged from its previous close of R11.2150‚ and at R13.7572 against sterling from R13.7640 before.
The euro was bid at $1.3088 from its overnight close of $1.3083.
“We would expect the rand to remain within the aforementioned range ahead of tomorrow’s European Central Bank policy meeting and publication of local manufacturing data‚ which collectively could give rand participants some fresh impetus to digest‚” Barclays Capital said. - I-Net Bridge