The rand was a touch firmer than Monday’s close in quiet morning trade on Tuesday as the Queen’s Diamond Jubilee celebrations on Monday and Tuesday robbed the local foreign exchange market of liquidity.
“The euro is sticking to near the 1.25 per dollar level‚ so we are a tad stronger as well‚” a local trader said.
At 09:00 the rand was bid at R8.4711 to the dollar from Monday’s close of R8.4758‚ Friday’s close of R8.5721 and Thursday’s close of 8.5006. It was bid at R10.5802 to the euro from its previous close of R10.6063 and at R13.0154 against sterling from R13.0398 at its previous close. The euro was bid at US$1.2491 from Monday’s close of $1.2504‚ Friday’s close of $1.2418 and Thursday’s close of $1.2364.
Gold was trading at US$1613.80 per ounce.
Dow Jones Newswires reported that the euro firmed versus the dollar and the yen in Asia on Tuesday as traders bought back the single currency on hopes the Group of Seven industrialised nations would come up with steps to help defuse the European crisis.
Canadian Finance Minister Jim Flaherty said on Monday that finance ministers and central bankers from the G7 countries will hold a teleconference later in the day to discuss developments in the eurozone.
Traders in Tokyo said the meeting won't produce any breakthroughs on Europe's debt crisis. But‚ combined with expectations for fresh easing action by the European Central Bank at its policy-setting meeting on Wednesday‚ that gave the euro solid footing above $1.2500.
Meanwhile‚ the Australian dollar rose after the Reserve Bank of Australia's decision to cut its key interest rate by 25 basis points. "There might be a perception that the RBA's rate reduction may come to a halt in the near term‚" says Daisaku Ueno‚ senior foreign exchange and fixed income strategist at Mitsubishi UFJ Morgan Stanley.
Jubilee robs SA bond market of liquidity
South African bonds were little changed in quiet morning trade on Tuesday as the UK holiday to celebrate the Queen’s Diamond Jubilee robbed the market of liquidity.
“We did nothing most of yesterday with London out of the market and that looks set to continue today. The only highlight today will be the normal weekly bond auction‚” a local trader said.
At 09:00‚ the benchmark R157 bond was trading at 6.360 percent from Monday’s close of 6.355 percent and Friday’s close of 6.340 percent. The R207 was bid at 7.650 percent and offered at 7.620 percent from a previous close of 7.635 percent and the R186 was trading at 8.400 percent from its close of 8.390 percent.