Rand loses ground

JOHANNESBURG. — THE rand resumed its path of weakness at midday yesterday amid dollar strengthening against the euro. At 11.28am the rand was at 15,6199 against the dollar from 15,5647 previously. Against the euro the rand was at 16,8513 from 16,8587. The local unit was trading at 22,9580 against the pound from 22,8998. The euro was at $1 0788 from $1 0832. Analysts at Nedbank Capital said liquidity in the forex market was extremely light. “We are still awaiting normality to return to the markets.”

The euro was under pressure due to weak German inflation figures released on Monday.

The euro surrendered all gains made on the day as the market remained long on dollars, partly also because of geopolitical tension between Iran and Saudi-Arabia. Market momentum still favours a stronger greenback.

“Given the US Fed’s signal of interest-rate normalisation, albeit gradually, we may see a strong dollar trend play out in 2016 before exhausting in the coming years,” Nedbank said. — BDLive.

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