The rand was in ranges in morning trade on Wednesday, with the consumer price index (CPI) figure out later today.

At 9.01am the rand was bid at 8.1375 to the dollar from an overnight close of 8.1640. It was bid at 11.4820 to the euro from a previous 11.5000 and at 13.4257 against sterling from 13.4218.

The euro was bid at $1.4122 from $1.4071 overnight.

A local trader said: "We are holding in ranges this morning. We expect to hold above 8.10 before the CPI figures come out, with a resistance of 8.13-14 on the way up."

RMB analyst Nema Ramkhelawan said in a daily report that current volatility suggests that the ZAR is still at the mercy of investor sentiment, and RMB continues to stress the vulnerability inherent in global markets. "While investors appear willing to test the waters and diversify away from USD-based assets, doubts over the economic recovery remain. Even though the emergence of green shoots has fostered hope in a weary market, recent data has not supported the perceived pace of the recovery rendering the market susceptible to bouts of risk aversion," Ramkhelawan said.

RMB pointed to plentiful local data this week with CPI due later this morning. "Despite pressures arising from food price inflation and the volatility in the petrol price, our economists expect CPI to resume its downward trajectory and print at 7.9 percent year-on-year. The SARB will be mindful of the gradual reduction in inflation in its rate decision, to be delivered tomorrow.

"However, the outcome of FOMC meeting is more likely to sway the ZAR, as the additional purchase of long-dated US government bonds could fuel inflationary concerns and weaken the USD. However, it is unlikely that the Fed will tighten monetary policy at the first signs of recovery, as the real economy is still weak. Event risk therefore remains elevated in light of the FOMC meeting today. We expect USD/ZAR to trade within a range of 8.10 - 8.20," Ramkhelawan said.

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