The rand pared earlier gains but was little changed against major currencies shortly before midday on Tuesday, as global growth sentiment supported emerging markets — but analysts called for caution. The rand had weakened against the dollar on Monday as traders squared their positions ahead of Tuesday’s US Independence Day holiday. Global markets are expected to be risk-off until US markets re-open, but the shine could be coming off emerging-market bonds, analysts said. At 11.30am, the rand was at R13.2135 to the dollar from R13.2155‚ at R14.9935 to the euro from R15.0175, and at R17.0732 to the pound from R17.0980. The euro was at $1.1348 from $1.1364. Recent positive global economic growth signs and low inflation prints in the US and Europe should support the rand, but a meaningful recovery could be some way off, Rand Merchant Bank currency strategist John Cairns said. Sentiment towards the local currency was poor and foreigners are selling local assets due to improved global yiel...
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