Currencies (13.7.04)

The rand was steady against the dollar in late afternoon trade yesterday in a quiet, flow-driven market.

RMB AM and Business Day report that currency traders expected the rand to remain range-bound for the rest of the day, unless the euro gave it direction.

In late afternoon, the rand was quoted at R6,0508 to the dollar from R6,0876 on Friday. It was quoted at R7,4924 to the euro from a previous R7,5442 and at R11,2710 against sterling from Friday's R11,3190.

It has been very quiet. The rand has been in a R6,04-R6,08 range all day. A currency trader said that they have seen small two-way flows.

He said the rand was likely to remain rangebound, although this depended on the euro, which the rand tends to follow because the euro zone is SA's largest trading partner.

The dollar traded in narrow ranges yesterday, with sentiment bearish ahead of a heavy US economic data slate this week, while the yen pared its gains made earlier in the global session.

The dollar slid briefly to a four-month low against the euro and a five-month low against the Swiss franc, extending last week's losses as the market continued to tone down expectations for anything more than a gradualist approach to interest rate hikes from the US Federal Reserve.

The euro traded nearly flat at $1,2404 in late afternoon trade.