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Johannesburg - The rand came off its worst levels in afternoon trade on Monday despite
the expected resignation of the Dutch prime minister Mark Rutte after
his right-wing parliamentary partner walked out of austerity talks.
"The Dutch move has so far not impacted as it is still unconfirmed, even though it has already been discounted by the markets," a local trader said.
At 18:00 local time the rand was bid at R7.8602 to the dollar from its previous close of R7.7988 and touching a worst level of R7.8807. It was bid at R10.3182 to the euro from R10.3101 before, and at R12.6527 against sterling from R12.5981 previously.
The euro was bid at $1.3126 from its previous close of $1.3211 after sinking to a two-month low of $1.2993 on April 16.
RMB said in its morning report that the rand managed to hold remarkably steady over the last week.
"While the rand appears to be consolidating at current levels, the risks still stem predominantly from Europe. This weekend's IMF and G20 meetings yielded an additional $400 billion in lending resources, seen as a global firewall. However, concerns remain over how quickly this extra lending will be made available. Reports of delays of up to a year have tempered the optimism the original deal inspired. In addition to the lingering concerns over Europe, a flash manufacturing index out of China that is once again below the threshold 50 level, is likely to further dampen the mood today," the bank said.
Dow Jones Newswires reported that the euro fell against the dollar and yen on Monday in Asia, following French President Nicolas Sarkozy's poor showing in Sunday's first round of France's presidential vote. Sarkozy came in second to Socialist François Hollande, who garnered 28.4% of the vote compared to Sarkozy's 27%.
"The Dutch move has so far not impacted as it is still unconfirmed, even though it has already been discounted by the markets," a local trader said.
At 18:00 local time the rand was bid at R7.8602 to the dollar from its previous close of R7.7988 and touching a worst level of R7.8807. It was bid at R10.3182 to the euro from R10.3101 before, and at R12.6527 against sterling from R12.5981 previously.
The euro was bid at $1.3126 from its previous close of $1.3211 after sinking to a two-month low of $1.2993 on April 16.
RMB said in its morning report that the rand managed to hold remarkably steady over the last week.
"While the rand appears to be consolidating at current levels, the risks still stem predominantly from Europe. This weekend's IMF and G20 meetings yielded an additional $400 billion in lending resources, seen as a global firewall. However, concerns remain over how quickly this extra lending will be made available. Reports of delays of up to a year have tempered the optimism the original deal inspired. In addition to the lingering concerns over Europe, a flash manufacturing index out of China that is once again below the threshold 50 level, is likely to further dampen the mood today," the bank said.
Dow Jones Newswires reported that the euro fell against the dollar and yen on Monday in Asia, following French President Nicolas Sarkozy's poor showing in Sunday's first round of France's presidential vote. Sarkozy came in second to Socialist François Hollande, who garnered 28.4% of the vote compared to Sarkozy's 27%.
