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Johannesburg. – THE rand was slightly weaker at midday yesterday as it consolidated around weaker levels which could see it test an important downward resistance level.
The rand has been in a softer trend since the weaker trade data released on Friday after failing to sustainably break through 10,30 rand per dollar last month.
By mid morning, the rand was at 10,5923 to the dollar from Friday’s close of 10,5711. Against the euro, the rand was at 14,4071 from its previous close of 14,4080 and at 17,7273 to the pound from Friday’s close of 17,7027.
The euro was at $1,3600 from its previous close of $1,3629. Iquad group currency dealer Tony van Dyk said the rand was softer on negative local news, particularly the April trade data released on Friday and the ongoing strike in the platinum sector, as well as a probable strike in the motor vehicle sector. “But the rand has not been alone as emerging market currencies, notably the Turkish lira, were also weaker,” he said.
Mr van Dyk expects the rand to continue trading at the upper range of 10,40 rand to 10,60 rand, with 10,65 rand a crucial resistance level. “If it crosses R10,65, the rand could weaken further all the way to R10,85,” he said.
Although the rand is partially supported by foreign inflows, some pull-back will not be unexpected in response to the weak first-quarter gross domestic product numbers released last month, he said. – Businessday.
Online Reporter