The rand was marginally weaker on Thursday afternoon in range-bound trade after the dollar recovered slightly after weakening following reports that China was considering cutting purchases of US treasuries.
Rand investors now await signals from the ANC’s national executive committee (NEC) meeting in East London. The confirmation‚ however‚ that President Jacob Zuma’s resignation as head of state was not discussed‚ put a lid on further gains in the currency.
Higher commodity prices kept the rand from losing further ground.
The rand seemed to be in a state of confusion at the moment‚ said Peregrine Treasury analyst Bianca Botes. “Markets are also disappointed in Zuma escaping a much-anticipated recall by the governing party.”
At 3pm the rand was at R12.4711 to the dollar from R12.4346‚ at R14.972 to the euro from R14.8576 and at R16.8179 to the pound from R16.8028.
The euro was at $1.2006 from $1.1947.
The European Central Bank’s (ECB) minutes of the December meeting‚ released on the day‚ indicated the bank may mull its forward guidance‚ Dow Jones Newswires reported. “The language pertaining to various dimensions of the monetary policy stance and forward guidance could be revisited early in the coming year.”
The ECB had earlier reduced its monthly bond purchases from €60bn to €30bn‚ but indicated it would not increase interest rates until inflation showed a more measured increase.
A further curtailment of the ECB’s stimulus policy could be on the cards on upbeat economic growth‚ analysts said.
Rand slightly weaker but trades in tight ranges
Rand investors now await signals from the ANC’s national executive committee (NEC) meeting in East London. The confirmation‚ however‚ that President Jacob Zuma’s resignation as head of state was not discussed‚ put a lid on further gains in the currency.
Higher commodity prices kept the rand from losing further ground.
The rand seemed to be in a state of confusion at the moment‚ said Peregrine Treasury analyst Bianca Botes. “Markets are also disappointed in Zuma escaping a much-anticipated recall by the governing party.”
At 3pm the rand was at R12.4711 to the dollar from R12.4346‚ at R14.972 to the euro from R14.8576 and at R16.8179 to the pound from R16.8028.
The euro was at $1.2006 from $1.1947.
The European Central Bank’s (ECB) minutes of the December meeting‚ released on the day‚ indicated the bank may mull its forward guidance‚ Dow Jones Newswires reported. “The language pertaining to various dimensions of the monetary policy stance and forward guidance could be revisited early in the coming year.”
The ECB had earlier reduced its monthly bond purchases from €60bn to €30bn‚ but indicated it would not increase interest rates until inflation showed a more measured increase.
A further curtailment of the ECB’s stimulus policy could be on the cards on upbeat economic growth‚ analysts said.
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