Rand softer on trader profit tak­ing

Saturday Star - - INSIGHT -

THE RAND re­treated against the dol­lar yes­ter­day as traders look­ing ahead to the new week took prof­its from the cur­rency’s rally to a twoand-a-half month best, with wor­ries about the state of the econ­omy creep­ing back into sen­ti­ment.

At 5pm, the rand was bid at R12.933 to the dol­lar, 9.13c softer than at the same time on Thurs­day, its weak­est in two ses­sions, hav­ing closed at R12.80 overnight.

The rand has gained about 5 per­cent in the past 30 days as po­lit­i­cal ten­sions be­tween the US and North Korea sim­mered.

Data on Tuesday show­ing the econ­omy had shaken off re­ces­sion spurred the rally, but fig­ures later in the week show­ing key sec­tors of the econ­omy re­mained sub­dued dimmed sen­ti­ment and saw short sell­ing on the unit.

Mean­while, stocks eased yes­ter­day, mov­ing fur­ther away from record peaks scaled two weeks ago as in­vestors took prof­its and a euro rally hit Euro­pean stocks.

The bench­mark JSE Top40 in­dex de­clined 0.32 per­cent to 49 274.03 points, while the broader all share in­dex lost 0.27 per­cent to 55 724.67 points. – Reuters

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