Picture: ISTOCK
Picture: ISTOCK

The rand slipped about 1% against the euro and sterling on Friday afternoon, but was only slightly softer against the dollar, despite the greenback reaching a three-year low to the euro.

The rand’s failure to capitalise on the euro’s gains came as analysts expect risk-off trade ahead of the release of US inflation data at 3.30pm local time.

The euro extended a week of gains after an agreement was reached to form a coalition government in Germany. The prospect of the political stability offered by a coalition government in Germany was in contrast to the "perpetual mayhem" of the administration of US President Donald Trump, said BK Asset Management analyst Boris Schlossberg.

The euro also gained on Thursday after European Central Bank (ECB) minutes pointed to plans to revise its guidance for tapering quantitative easing early this year.

On Wednesday, the dollar had also come under pressure following reports that China may begin paring back its purchases of US debt. The Chinese government has, however, denied this.

At 3pm, the rand was at R12.4146 to the dollar from Thursday’s R12.3898, at R15.0639 to the euro from R14.9076, and at R16.9256 to the pound from R16.7781.

The euro was at $1.2135 from $1.2030.

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