Rand weak‚ eyes data for direction

The rand weakened on Tuesday morning as traders eyed local data and international events for direction.

“ZAR participants have a deluge of domestic data to digest today (retail sales‚ manufacturing and employment data)‚” Absa Capital said in a note on Tuesday morning.

Graphic: Renjith Krishnan.

“As noted yesterday‚ we would expect the local unit to weaken at the margin if‚ on balance‚ these data are weak enough to rekindle domestic rate cut expectations.”

At 8.30am‚ the rand was bid at R8.6716 to the US dollar from Monday’s close of R8.6679. The local currency was bid at R11.2247 to the euro from its previous close of R11.2120 and at R13.9347 against sterling from R13.9196 before.

The euro was bid at $1.2953 from Monday’s close of $1.2935.

RMB said in a note: “Global market focus has been on the resignation of Italian Prime Minister Monti. PIIGS (Portugal‚ Ireland‚ Italy‚ Greece and Spain) sovereign yields have taken it badly‚ seeing their first sustained spike since the European Central Bank announced the OMT programme in September.” - I-Net Bridge