Rand weakens as dollar pars losses
Agricultural futures
THE RAND weakened yesterday, pausing a recent rally that has lifted the unit to 17-months highs as the dollar pared losses following a batch of upbeat US economic data.
However, at 5pm the rand was bid at R12.9486 to the dollar, 11.86c firmer than at the same time on Wednesday, pulling back from a session best of R12.90 as the greenback regained some ground.
The rand has broken through a number of key technical resistance points to reach its firmest levels since August 2015, and has gained more than 3 percent in the last three sessions as signs of economic recovery boosted demand for the unit. It would likely struggle to stretch gains to the next key level around R12.40, with the momentum set to come from next week’s budget speech, traders said. SOYA BEANS for delivery in May declined 0.4 percent to $10.67 a bushel (R5 112 a ton) on the Chicago Board of Trade yesterday afternoon.
Prices dropped for three of the last four days. However, the prices are up 6.3 percent this year.
“The end of report, which will display the US acreage estimations in corn (maize) and soya beans will be decisive for the future,” Parisbased Agritel said in a report.
Maize for delivery in May lost 0.3 percent to $3.84 a bushel.
Wheat for May delivery retreated 0.1 percent to $4.67 a bushel. – Bloomberg