A little bit

(22.7.04) The rand was weaker against major currencies in late afternoon trade yesterday on the back of a softer euro and a small technical break above R6,04 to the dollar.

RMB AM and Business Day report however, that currency traders said that weakness did not yet mean a change in the strengthening trend, which saw the rand break below R6 level on Friday for the first time since October 1999.

In late afternoon, the rand was quoted at R6,0663 to the dollar from R5,9601 on Tuesday. It was quoted at R7,4338 to the euro from a previous R7,3457 and at R11, 1650 to sterling from Tuesday's R11,0440 and Monday's R11,07.

The rand is weaker on the back of the euro, plus the break above R6,04 was a bit of a chart point, a currency trader said.

The trader said that while he expected the euro to weaken, the rand would have to sustain a break above R6,08 to the dollar to signal a change of trend.

The dollar extended gains against major currencies yesterday in the wake of optimistic comments on the US economy from the US Federal Reserve Chairman Alan Greenspan, reinforcing expectations of further interest rate rises.