Graphic: renjith krishnan

Johannesburg - The rand weakened on Tuesday morning as traders eyed developments at the African National Congress (ANC) elective conference in Mangaung and concern about the US fiscal cliff.

“While we believe the rand remains vulnerable in the near term to global (for example‚ the fiscal cliff) and domestic (for example‚ the ANC elective conference) risks‚ we expect the rand to stage a recovery in 2013‚” Absa Capital said in a note.

At 8.19am‚ the rand was bid at R8.5378 to the US dollar from its previous close of R8.5218. The local currency was bid at R11.2526 to the euro from its previous close of R11.2135 and at R13.8391 against sterling from R13.8032 before.

The euro was bid at $1.3174 from Monday’s close of $1.3160.

“The rand is enjoying the usual year-end appreciating trend‚ assisted somewhat by a weaker dollar environment‚” Absa Capital added. - I-Net Bridge