THE rand was slightly weaker in late trade on Thursday compared with the previous day’s levels, as market participants sat on the sidelines awaiting Friday’s local October foreign trade balance data and money supply figures.
At 3.50pm the rand was at R10.2211 to the dollar from R10.2173 at Wednesday’s close.
Against the euro‚ the rand was at R13.8993 from R13.8670 at its previous close and was at R16.7029 against the pound from R16.6241 at Wednesday’s close.
The euro was at $1.3599 against the dollar from Wednesday’s close of $1.3572.
"There has been quite a bit of activity throughout the day in the forex market, but the rand did not move anywhere as there was no momentum in either direction," a local trader said.
"Should the trade deficit print tomorrow be a reduced deficit, we should see offshore buyers buying the rand and the local currency could strengthen to R10.05 to R10.10.
"The rand could strengthen because the rand has sold off more than was necessary amid some speculative trade as of late.
"However, a cheap rand is attractive," the trader said.
"The rand has been subjected to speculative trade since March this year, when it was at R8/$ and has weakened to R10.50/$ in the past eight to nine months, but managed to retrace some value back to R9.60/$, as it was bought again by offshore buyers at weak levels," he said.
