Graphic: renjith krishnan

Johannesburg – The rand picked up slightly in midday trade on Tuesday‚ tracking euro gains against the dollar over the last few days.

Kuziva Muganiwa‚ a global markets analyst from Vunani Capital said when the rand reached R9.16/$‚ the market felt the currency was oversold.

“The rand has pulled back a bit in light of the euro strengthening against the dollar earlier today‚” he said.

At 11.36am‚ the rand was bid at R9.0697 to the US dollar after touching R9.1258 in early trade from R9.0897 at Monday’s close and R8.9422 at Friday’s close.

The local currency was bid at R12.1865 to the euro from its previous close of R12.2265 and at R14.2397 against sterling from R14.2652 before.

The euro was bid at $1.3448 from Monday’s close of $1.3447.

“For now‚ Anglo Platinum’s backtracking on their decision has also been viewed by the market as positive‚” he said.

Platinum remains the biggest earner of foreign currency in the country.

“There is hope that government and business might work together to find a lasting solution.”

Despite this foreign investors were net sellers of the local currency yesterday. - I-Net Bridge