The rand weakened against the US dollar on Tuesday afternoon as local traders tracked the euro as German factory orders disappointed global markets.
“The rand is slightly weaker today as German factory orders were worse than expected‚ this is very bad for the euro and very bad for the local currency‚” said Mark Kalkwarf‚ a senior portfolio manager from the Iquad Group.
At 3.30pm‚ the rand was bid at R8.5726 to the US dollar from Monday’s close of R8.5648. The local currency was bid at R11.2206 to the euro from its previous close of R11.2337 and at R13.7683 against sterling from R13.8036 before.
The euro was bid at $1.3085 from its overnight close of $1.3123.
“Local traders will also be keeping a very close eye on the potential continuation of the unrest in the South African farming industry; if it goes ahead it will be very negative for the rand‚” Kalkwarf said. - I-Net Bridge