adminJOHANNESBURG – THE rand was firmer against the dollar at midday on Monday, trading below the R15/$ level. This was due to a softer dollar and some risk-on trade ahead of the British referendum on Thursday on whether to leave or remain in the EU (Brexit). It is expected to stay within the EU. Local traders are also waiting for the May inflation numbers that will be released by Statistics SA on Wednesday, with a slight increase expected due to broad-based rand weakness over time.Inflation is expected to have inched up to 6.3 percent year on year in May, from 6.2 percent in April.
At 11.34am‚ the rand was at R15.9114 to the dollar from R15.0401 at the previous close.
It was at R16.9001 against the euro from R17.0433 previously‚ and at R21.7955 against the pound from R21.7680 previously.
The euro was at $1.1334, from $1.1332 previously. TreasuryOne dealer Andre Botha said the rand strengthened 10c on Monday morning mainly due to a weaker dollar, while dollar weakness seemed delayed and was mostly due to bad data out of the US on Friday.
This week again has the US and Britain in focus with Federal Reserve chair Janet Yellen’s testimony to Congress on Tuesday and the start of the UK referendum on Thursday, he said.
Mr Botha said he expected the rand to be volatile on any news regarding Brexit, with the local currency likely to gain against the dollar in the event of Britain staying in the EU. – Reuters.
Online Reporter