The rand was a touch firmer in quiet early trade on Tuesday as the northern hemisphere summer holidays robbed the market of liquidity.
“This is the summer doldrums period so there is nothing to move the rand out of its recent range until the European traders return from their holidays in September‚” a local trader said.
At 8.44am local time the rand was bid at R8.2993 to the dollar from Monday’s close of R8.3197 and Friday’s close of R8.3127. It was bid at R10.2598 to the euro from its previous close of R10.2714 and at R13.0653 against sterling from R13.0688 before.
The euro was bid at US$1.2377 from $1.2350.
RMB said the rand should be able to start edging stronger again.
“We saw the unit finally top out yesterday and its compatriot currencies are now making slow but steady gains‚” the bank said.
“The worst effects of the mine shootings should now be behind us. Look for USD/ZAR to drift below 8.30 and EUR/ZAR to drop to 10.20 or lower in what should still be slow and unexciting trade.
“The global environment is reflecting the northern hemisphere holiday season. There has been little in the way of meaningful market moves and‚ with the data calendar deplete of anything important‚ we should expect much of the same today‚” the bank said. - I-Net Bridge