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THE rand traded in a narrow range at weaker levels yesterday morning as market attention was focused on the credit rating announcements due from Fitch and Standard & Poor’s today.
After opening at 11,4289 on Wednesday, the local unit breached 11,50 to the dollar by late afternoon as concern about the state of SA’s economy continued to reduce the currency’s appeal.
At 8.30am yesterday, the rand was at 11,5371 to the dollar from a close of 11,5343. Against the euro‚ the local unit traded at 14,3544 from 14,3903 previously and was at 18,1143 against the pound from 18,1584.
The euro was at $1,2440 from $1,2480 previously. Barclays Research said in an early morning note that the rand had weakened to a 12-year low on Wednesday on local factors.
Growing fears that rating agencies could downgrade SA today and the threats of more electricity outages sent the rand to 11,57 to the dollar on Wednesday — its weakest level since March 2002.
“These two developments seem to have overshadowed Wednesday’s local consumer price index and retail sales data and ensured that the rand weakened in broad-based terms on Wednesday.
“We expect these two concerns to remain front of mind for the remainder of the week and, given that we are in line with consensus with regards to this afternoon’s US retail sales data, we are not expecting international developments to have much influence,” said Barclays. — BDlive.
Online Reporter