Stable Manguang outcome supports rand

Graphic: renjith krishnan

Graphic: renjith krishnan

Published Dec 19, 2012

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The rand was slightly weaker on Wednesday morning after breaking the R8.50/US$ mark as stability emerged from the African National Congress national conference in Mangaung.

“The confirmation of the ANC leadership caused the rand to strengthen yesterday. This creates stability in the market‚” Vunani Private Clients global market analyst Kuziva Muganiwa said.

At 8.31am‚ the rand was bid at R8.4474 to the US dollar from its previous close of R8.4468 on Tuesday. The local currency was bid at R11.1824 to the euro from its previous close of R11.1778 and at R13.7376 against sterling from R13.7285 before.

The euro was bid at $1.3241 from Tuesday’s close of $1.3227.

“Because of position squaring‚ in preparation for the upcoming holidays‚ the liquidity levels will reduce and thus we are expecting to see some jumps in the rand for no reason as you have fewer players who could swing the market in any direction‚” Muganiwa said. - I-Net Bridge

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