The rand was weaker on Thursday afternoon as the currency remained unable to sustainably strengthen through R11 to the dollar, despite a weaker greenback against the euro.
The dollar was notably softer against the euro, as off-risk concerns on emerging-market contagion kept the rand under pressure. The rand usually tracks the euro’s moves against the dollar, but that has not been the case of late.
At 4.21pm, the rand was at R11.0748 to the dollar from Wednesday’s close of R10.9962.
Against the euro, the rand was at R15.1435 from its previous close of R14.9352 and was at R18.4253 against the pound from R18.2542 overnight.
The euro was at $1.3674 from $1.3587 on Wednesday.
According to Barclays Research rand analyst Mike Keenan it was another indecisive trading session for the rand. “It continues to oscillate within a tight range around the psychologically important R11 to the dollar level.”
“Local data. such as the release of mining production figures for December during the day, had not affected the currency. It was the same case with the release of retail sales data on Wednesday,” he said.
The rand showed little reaction to a Moody’s Investor Services report on Thursday which said the steep depreciation of the rand would lead to only marginally lower economic growth than had been expected for 2014. It will therefore have a limited effect on the SA government’s Baa1 rating and negative outlook.