JOHANNESBURG – THE rand hovered close to last week’s two-and-a-half year highs against the dollar yesterday, and dealers said it could target 6.88 should the euro hold its recent gains against the US currency.
The key futures index suggested a largely flat open for local stocks after the market retreated slightly on Friday from its recent rally.
At 08:33, the rand traded at R6,9380 to the dollar, just 0,19 per cent off Friday’s close at R6,9250.
The domestic currency reached a high of R6,92 versus the dollar on Friday, data showed, the strongest it has been since January 2008, partly tracking a rally in the euro, the currency of one of South Africa’s major trading partners.
‘The rand is very much still euro-dependent. The danger is that the euro goes to US$1,3840 and if the euro is going there, we’re going to somewhere in the region of R6,88/86,’ said RMB trader Jim Bryson.
‘The euro is perhaps starting to run out of a little bit of steam, so we might find that we do see R6,88/90 but the rand could be a little bottomish there. On the upside, I think back through R6,96, we’ll consolidate back to R7,00.’ – Nampa-Reuters
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