The rand was weaker in range-bound trade at midday on Tuesday as the local currency crossed R13 to the dollar after firming to R12.70 on Monday.
Analysts said the rand was likely to trend weaker ahead of S& P Global’s expected rating update on Friday and the release of US nonfarm payroll data on the same day. Weaker commodity prices added to the local currency’s woes.
At 11.42am the rand was at R13.0742 to the dollar from R12.9689‚ trading in a range of R12.95 and R13.08.
It was at R14.5878 to the euro from R14.4888 and at R16.8118 to the pound from R16.6506.
The euro was at $1.1155 from $1.1172.
The rand weakened after the ANC said on Monday that President Jacob Zuma would not be recalled following the weekend’s national executive committee (NEC) meeting.
Nedbank Corporate and Investment Banking analysts said the price action in local markets on Monday suggested that they had pinned significant hope on a different outcome from the ANC NEC.
“This‚ combined with the impending ratings review from Moody’s and the current euro weakness had the local unit on the back foot‚” Nedbank said.
Moody’s is set to announce its ratings decision soon‚ most likely this Friday or next.
– TMG Digital/BusinessLIVE