Rand recoups some losses

The rand recouped some of its intraday losses against the dollar in Friday afternoon trading following disappointing data out of the US.

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The rand recouped some of its intraday losses against the dollar in Friday afternoon trading following disappointing data out of the US.

“Disappointing US non-farm payrolls data has thrown the cat among the pigeons,” said Michael Keenan, head of forex research at Standard Bank.

“Two things have been pushing the rand weaker ... one is the anticipated return of importers to the market and the other expectations of a firmer dollar.”

Keenan added that payrolls data was the key barometer for the health of the US economy.

“We'll nevertheless be watching other figures in the coming weeks,” he said.

At 15:33 local time the rand was bid at 6.8022 from 6.7880 at its previous close. It was bid at 8.8567 to the euro from 8.8110 before and at 10.5512 against sterling from 10.4747 at its previous close.

The euro was bid at US$1.3012 from its close before of US$1.2978.

Just before the release of the payrolls data, the rand was bid at 6.8268 against the dollar.

Dow Jones Newswires reported that US nonfarm payrolls data came in weaker than expected.

Figures showed nonfarm payrolls rose by 103,000 in December, against expectations of a rise of 150,000.

“Still, even though the figures disappointed expectations, the jobs picture is improving,” said Brian Kim, currency strategist at UBS. - I-Net Bridge

Source: http://www.iol.co.za/rand-recoups-some-losses-1.1009325

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