The rand was drifting lower at noon on Thursday on the back of a weaker euro‚ playing catch-up with a weaker dollar and due to worries about local mining issues.
“The violence at Lonmin is affecting the rand negatively‚ because investors are worried that violence could spill over to other mines‚ which could reduce exports‚ which would be negative news for the rand‚” a local trader said.
Rand Merchant Bank said in a note that the dollar/rand had pushed up to R8.25 and “we continue to believe the market should top out around here”.
“The euro/dollar has already settled down. More importantly our compatriot currencies have started to adjust stronger again and the rand should be pulled along in their wake‚” the bank said.
At 12.03pm local time the rand was bid at R8.2593 to the dollar from Wednesday’s close of R8.2140. It was trading at R10.1262 to the euro from its previous close of R10.0884 and at R12.9508 against sterling from R12.8809 before.
The euro was bid at US$1.2270 from $1.2281. - I-Net Bridge