Rand softer on renewed fiscal cliff worry

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IOL world currency1 Graphic: Renjith Krishnan.

The rand was a little softer at noon as investor concerns over unresolved US fiscal cliff boosted the dollar‚ which is generally considered a safe haven.

At 11.47am‚ the rand was bid at R8.5176 to the US dollar from its previous close of R8.4928. The local currency was bid at R11.2636 to the euro from its previous close of R11.2158 and at R13.8401 against sterling from R13.7919 before.

The euro was bid at $1.3237 from its overnight close of $1.3213.

The US Congress has until the end of the year to avert a fiscal cliff of huge tax hikes and spending cuts‚ which could tip the world’s largest economy into recession.

“The rand is sliding due to dollar preference because of its safe haven status. There is once again a sense that US fiscal cliff talks are not heading in the right direction‚” said Kuziva Muganiwa‚ global markets analyst at Vunani Private Clients. - I-Net Bridge


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