Rand stuck in a tight range as market keeps an eye on ANC policy conference

The rand was steady against major global currencies on Monday morning‚ stuck in a tight range as the ANC policy conference continued.

The party’s fifth conference‚ which started on Friday‚ has had little impact on the rand‚ with the currency trading within a tight range.

The conference has so far been dominated by controversial political issues‚ but markets will be keeping a close watch.

Monday’s agenda is expected to include discussion of economic issues‚ including land‚ the Reserve Bank‚ "white monopoly capital" and the Mining Charter.

RMB analyst John Cairns said rising yields in the global bond market had added to the pressure on the rand‚ after last week’s comments from global central bankers who indicated policy tightening would continue‚ even amid falling inflation and lower oil prices.

Momentum Investments said in a note that the local currency had experienced mild gains against the majors in June‚ ending up 0.1% firmer to the dollar but 1.5% weaker to the euro.

The local currency had gained up to 4.6% against the pound during the month but this reversed by month-end.

Nedbank analysts said currency markets had generally been steady and range-bound since Friday‚ and would probably remain that way for much of the week‚ ahead of US nonfarm payrolls data due on Friday.

At 9.02am the rand was at R13.0832 to the dollar from Sunday’s R13.0733‚ at R14.9213 to the euro from R14.9210 and at R17.0128 to the pound from R16.9876.

The euro was at $1.1407 from $1.1419. – BusinessLIVE

Source: Tiso Black Star Group Digital.