Rand mixed

JOHANNESBURG. — The rand was mixed against major currencies yesterday morning, as investors await producer price inflation data later in the day and the looming ANC national policy conference.

It was flat against the dollar but weaker against the pound and the euro. This is despite the recent weakness of the greenback following mildly hawkish comments from both US Federal Reserve and European Central Bank (ECB) officials earlier in the week.

Standard Bank trader Warrick Butler said there was likely to be controversy ahead of the ANC’s national policy conference that starts tomorrow. Some traders could use this to “fade into fresh short dollar positions”.

“Liquidity is definitely getting better, hence the narrower intraday ranges we have seen over the past few days,” said Butler.

Statistics SA is scheduled to release May’s producer price index (PPI) data at 11.30am. Investec Bank economist Kamilla Kaplan said in her weekly note on Friday that annual producer inflation could show a slight lift to 4,7 percent year on year in May from 4,6 percent in April despite declining oil prices.

Oil prices have been under pressure amid the fear of a global supply glut, although some analysts have warned a sharp rise could occur due to record levels of shorting for Brent crude.

The lower price should be good for consumers, however, with an approximate drop of 67c/l for petrol expected in early July. At 9.11am‚ the rand was at 12,9284 to the dollar from Wednesday’s 12,9381. It was at 14,7648 to the euro from 14,7182 and at 16,7789 to the pound from 16,7255. The euro was at $1,1421 from $1,1376. — BDLive.