The rand was range bound in Friday afternoon trade with the crucial election in Greece on Sunday expected to dictate market direction into the new week.
The outcome of the election may well determine the country’s future in the eurozone.
At 15:50 the rand was bid at R8.3709 to the dollar from Thursday’s close of R8.3667. It was bid at R10.5527 to the euro from its previous close of R10.5588 and at R13.0667 against sterling from R13.0021 before.
The euro was bid at US$1.2610‚ from Thursday’s close of $1.2623.
“We are waiting for the elections. Everything is dependent on what happens this weekend. This is a big one but whichever way it goes‚ we are likely to track the euro‚” a local trader said.
Barclays Bank analysts said the probability of no clear winner would lead to a coalition‚ which might increase market risk.
“We see this as being risk negative with another month of a power vacuum in Greece expected to add to uncertainty in the prospect of euro area peripheral crisis‚” the bank said.
Dow Jones Newswires reported that the euro was trading steadily‚ holding onto some small overnight gains against the dollar ahead of the Greek elections this Sunday.
Some investors were seeking out safe havens for their cash in advance of the vote that is seen as a referendum on Greece's membership of the common currency. The hunt for safety sent the Norwegian krone to a three-month high against the euro and the Swedish krona to the day's high. The Japanese yen also benefited from safe-haven flows‚ charging to a one-week high against the dollar.
