Rand steady amid weak global data - 12th Aug 2010

The rand continued to defy expectations in midday trade on Thursday fending off weak global economic data to remain steady at around R7.30 versus the dollar.

At 11:31 local time the rand was bid at R7.3016 to the dollar from R7.3052 at the previous close. It was bid at R9.3799 to the euro from R9.4035 before and at R11.3982 against the sterling from R11.4327 at its previous close.

The euro was bid at $1.2840 from $1.2843 overnight.

A local trader joked that the rand was the strongest currency in the world, remaining steady amid a weaker dollar and euro. "We need to get above R7.32 against the dollar to see nay real developments on the rand which is still strong despite the global chaos."

Dow Jones Newswires reports that concerns over the global economic recovery remain, especially after Australia reported that its jobless rate rose to 5.3% instead of remaining steady at 5.1% as forecast. This will add to worries that recent improvements in global labour markets are stalling, given that the UK, the US, Canada and now Australia are all experiencing higher unemployment.

Initial gains against the dollar, which took the euro to $1.2935, were lost as the currency fell back to $1.2843, well under $1.2882 late in New York.

The euro wasn't helped by the latest industrial production figures from the eurozone, which showed a 0.1% decline in June rather than a 0.5% rise as forecast. However, May production was revised up to show a 1.1% rise instead of a 0.9% increase.