Currencies

(15.7.04) The ran firmed ever so slightly in late trade yesterday as the dollar came under a bit of pressure following worse-than-expected US retail sales figures for June.

RMB AM and Business Day report that the market was unmoved, however, by the news that Standard & Poors had affirmed SA's BBB rating with a stable outlook. At 4.15pm, the rand was quoted at R6,08 to the dollar from R6,1051 and R6,0501 on Monday.

It was quoted at R7,5347 to the euro from R7,5313 and at R11,2990 against sterling from a previous R11,3390.

The rand has been fairly range bound for the better part of the day, but firmed a bit this afternoon on the back of a weaker dollar following the release of disappointing US retail sales data, a local currency dealer said.

The dollar slipped against the euro yesterday after US retail sales data showed consumer spending slowing, which analysts said would keep the Federal Reserve on a path of gradual interest rate hikes.

More moderate US interest rate increases would likely diminish the allure of dollar-denominated assets to foreign investors.

Traders are bracing for more US inflation data this week and analysts expect some tepid numbers that would keep the dollar on the defensive.