Category Investments

Currency firms

11 September 2004 Angelo Coppola

The rand firmed late on Friday to a one-week peak against the dollar as it drew inspiration from the euro, which gained against the greenback after a surprise drop in US producer inflation numbers.

RMB AM and Business Day report that at 2pm, the rand was trading at R6,59 to the dollar, about 6c firmer on the day. It had hit R6,5825 against the dollar at one point, its highest level in a week.

There are a few exporters around (selling dollars), said one trader. But he said most of the rand's move was related to the euro, which the rand often tracks as the currency of SA's main trading partner.

The dollar reversed course on Friday, shedding earlier gains as traders mulled the significance of softer-than-expected US producer prices.

Dealers said the rand would likely stay in a R6,55 to R6,70 to the dollar range early this week as it consolidated after losing ground in the wake of a surprise 50-basis point cut by the Reserve Bank a month ago in its key repo rate, which took it to 7,50%.

It has lost more than 6% against the dollar since then.

The dollar eased on Friday after an August decline in US producer prices undermined forecasts for dollar-boosting Federal Reserve interest rate hikes beyond this month.

Quick Polls


The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?


Infrastructure? You mean cash returns with higher risk!?!
Infrastructure cap is way too high
Offshore limit still needs to be raised
Who cares… Reg 28 does not apply to discretionary savings
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