Currencies stuck

This as the dollar extended its pullback from seven-week highs against the euro with markets braced for US trade data released today for direction.

By late afternoon the rand was trading at R5,9550 against the dollar, extending a firm trend after stumbling last week by nearly 8% against the greenback, which soared on suggestions that US authorities might step in to stem the unit's weakness.

In New York, the dollar slumped against the yen yesterday after a European Central Bank (ECB) official said the adjustment of exchange rates had gone too far in Europe and that Asia must do its share.

In terms of foreign exchange developments, at the European level the adjustment is completed and has even gone too far.

The key to this problem...lies in Asia and above all in China's hands, but China is not addressing this because of its internal problems.