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.
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