Rand slightly weaker

JOHANNESBURG — The rand eased yesterday morning, catching its breath after earlier touching its best level to the dollar in two weeks.

“With the lack of noise and negative headlines from the Presidency or the Treasury, the reasons for holding those long dollar positions dwindle,” Standard Bank trader Warrick Butler said in a note.

The rand has strengthened more than 30c against the greenback, buoyed in part by better-than-expected GDP figures and a weaker dollar.

The dollar came under further selling pressure after the disappointing US services sector data on Tuesday dealt a blow to prospects of a US interest rate hike in September.

“Overall, it seems like the market priced in too much of (a) potential rate hike by the Fed in September. Even at 25 percent . . . I guess that is too much for the market,” Butler said.

“My personal view is that if they don’t go now, they may not have the chance to go ever. The recent ISM (Institute of Supply Management) data in the US seem to point to dark clouds looming over the US economy.”

At 9.10AM, the rand was at 14,0089 against the dollar from 13,9777 at the previous close. It was at 15,7550 against the euro from 15,7340 previously‚ and at 18,7828 against the pound from 18,7906 previously. The euro was at $1,1246, from $1,1257 at its last settlement. — BDLive