Weak and strong

The rand weakened yesterday as the price of gold dropped, but traders said further losses were likely to be limited ahead of the outcome of the Reserve Bank's two-day monetary policy meeting.

RMB AM and Business Day report that a poll yesterday showed that 22 out of 24 economists expect the Bank to keep its repo rate steady at 7,50% with surging global oil prices and domestic debt threatening an otherwise benign inflation outlook.

By late afternoon, the rand was trading at R6,59 to the dollar – about 4c weaker than its levels late on Monday, when it was tucked in a tight range with the US closed for a public holiday.

In New York the dollar gained against European currencies yesterday, drawing support from weaker-than-expected investor confidence numbers in the euro zone and a benign inflation report out of Britain.

The euro was trading about $1,2313, below US levels around $1,2390.