Rand steady against the dollar

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The rand was steady against the dollar on Friday just before midday‚ showing signs of consolidation after a week-long rally.

The local currency gained 3.15% during the course of the week‚ which began on a sour note‚ with SA’s credit rating downgraded to junk status by ratings agency S& P Global Ratings last Friday.

The rand was range bound between R13.70/$ and R13.65/$ in earlier sessions.

Market focus shifted to the US on Thursday afternoon‚ taking a break from local politics as plans to pass the tax reform plan stalled‚ putting pressure on the dollar.

The market expects to hear the result of Friday’s Senate debate. Republican senator John McCain has already made clear his support of the tax overhaul bill.

TreasuryOne dealer Gerard van der Westhuizen said the tax reform bill‚ which could be completed by tonight‚ could pose a real risk for the rand but seeing that the conclusion will only be after the JSE closes‚ the rand could be expected to remain range bound.

At 11.31am the rand was at R13.6991 to the dollar from R13.7092‚ at R16.3280 to the euro from R16.3183 and at R18.5007 to the pound form R18.5451.

The euro was at $1.1919 from $1.1904.

Reitumetse Pitso— Business Day

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