Rand a little weaker as market eyes fresh catalysts
Global markets are a little subdued on Tuesday, although the Turkish lira has resumed its slide
The rand was slightly weaker on Tuesday morning, in line with most of its emerging-market peers, as global markets waited for fresh direction.
Asian and European markets were mixed on Tuesday, with no major global or local events. Focus remains on Brexit, with voting on a path forward expected to resume on Wednesday.
At 9.45am the rand was 0.73% softer at R14.2484/$, 0.59% weaker at R15.9538/€ and 0.2% down at R18.579. The euro was 0.14% weaker at $1.1196.
Some focus remains on the Turkish lira, which was about 2% weaker against the dollar at the same time.
The lira has been volatile after local government elections were held in that country at the weekend. Setbacks for the ruling party during the polls have raised the possibility of further populist policies that could ultimately be negative for the lira, analysts said.
The dollar was finding a little support, but the rand should trade sidewise given the absence of major local or international events, said TreasuryOne senior currency dealer Andre Botha.
Some focus is also on the weekly government bond auction, as this is the first of the government’s new fiscal year.