Rand weakens in early trade- Report

The rand, which firmed against the US dollar on Monday, was trading 0.5% weaker at noon on Tuesday.

The local currency opened the day at R13.41 to the greenback and initially strengthened to R13.34/$ before weakening.

At 11:48 it was trading at R13.48/$.

On Monday the rand had gained against the dollar, noted Bianca Botes of Peregrine Treasury Solutions: “Weak economic data from the US, coupled with the trade war dynamic, saw the US dollar drift softer and a resultant emerging market currency rally which began on Friday.”

Botes said the rand could also react during the course of the afternoon to business confidence figures released by the SA Chamber of Commerce and Industry.

Sacci’s Business Confidence Index for June 2018, released on Tuesday morning, came in at 93.7, which is 1.2 index points lower than its level of 94.9 in June 2017.

Andre Botha of TreasuryONE said in a morning note that the rand would again likely track the movements of the dollar on Tuesday.

He noted that volatility could be expected for the pound in the wake of the resignation of British Foreign Secretary Boris Johnson over his party’s handling of Brexit negotiations.

At 11:58 the rand was trading at R17.87 to the pound, down 0.49% on the day.

Financial report by Fin24

Photo Credit- BusinessTech

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