The rand was firmer against the dollar at midday on Tuesday in quiet trade‚ as concerns about further US rate hikes dissipated somewhat.
At 11.30am‚ the rand was at R13.5276 against the dollar from R13.5812 at the previous close. It reached a best level of R13.43/$ but could not hold on to the firmer levels.
It was at R15.3283 against the euro from R15.3756 previously‚ and at R17.8302 against the pound from R17.8390 previously.
The euro was at $1.1331‚ from at $1.1322 at its previous close.
Traders said the caution that the market experienced after US Federal Reserve vice-chair Stanley Fischer’s comments regarding US rate increases later in the year‚ had dissipated somewhat.
Treasury One currency dealer Andre Botha said the rand had looked overstretched and had probably found a new comfortable level at about R13.50/$.
“It was likely to trade 10c on either side in a narrow band leading up to Friday when Fed chair Janet Yellen will address the Jackson Hole central banks meeting‚” he said.
Earlier‚ mixed messages from some of the top US Fed officials caused some confusion in the markets‚ with the dollar initially strengthening and emerging-market currencies weakening on the possibility of an interest rate increase in the US in September. – TMG Digital/BDlive