It was a lackluster day in the market today, with most currencies trading in very narrow ranges. The rand traded in a 10cent range for most of the day, touching a high of R17.35 in the morning trading session but has found a comfortable level at R17.30, where it is currently trading. The sideways action has been seen throughout the market, with all the currencies having a very slow day.
The US dollar is holding firm below the 1.0300 level against the euro at 1.0261. Gold is also holding firm at around $1,745 per ounce. More emphasis will be placed on the FOMC minutes tomorrow as it is the big event of the week, and we could get some momentum after its release. With the Rand failing to break below R17.20 convincingly we do believe that the Rand is building a base from where it is likely to weaken in the short term.
