Lack of interest

RMB Am and Business Day report that the rand held a firmer tone.

This was inspired by a softer dollar, as the greenback retreated in the face of concern that the US central bank was unlikely to raise interest rates quickly after a widely anticipated hike at its meeting tomorrow.

By 2.30pm, the rand was trading at R6,56 to the dollar, about 2c firmer than its closing level on Thursday, but off the day's best level of R6,5325 to the dollar.

A raft of data last week has reinforced concern that the US economy is not robust enough to generate substantive rate hikes later this year, and consumer confidence data on Friday did nothing to dispel that view.

Traders said that speculation was mounting that the central bank might cut interest rates by another 50 basis points at its policy meeting next month.

The dollar drifted higher on Friday as dealers positioned to benefit from a potentially upbeat economic outlook from the US Federal Reserve when it meets next week to set monetary policy.

Relieved that a US consumer sentiment report released early on Friday was not as weak as some had feared, dealers placed "pre-Fed" positions, said an analyst.