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JOHANNESBURG.-The rand was stronger against the dollar at midday yesterday as emerging market currencies staged a mild rally. At 11.40am the rand was at 13,4574 against the dollar from a previous close of 13,5188.The local currency was at 15,1288 against the euro from 15,2326 and at 20,5868 against the pound from a previous close of R20.5853.
The euro was at $1,1240 from $1,1270. TreasuryOne chief currency dealer Wichard Cilliers said the poor US jobs numbers released on Friday had given the rand the impetus to strengthen.
“The dollar recorded the widest trade deficit in five months as exports fell by 2 percent, and imports increased by 1,2 percent, indicating the negative effect the stronger dollar is having on the US economy,” Mr Cilliers said.
The rand had also benefited from portfolio inflows into the bond market, as close to R7,8bn had flowed in from foreigners since last week Tuesday, he added.
Meanwhile, the rand hardly reacted to local reserves data released in the morning, as SA’s international reserves position remained relatively steady in September. The S. African Reserve Bank’s international gross reserves amounted to $46,13bn in September from $46,11 billion in August. – BDLive.
Online Reporter