Rand holds on to gains as fear fades

The rand was steady at firmer levels on Tuesday morning as last week’s negative investor sentiment dissipated.

Rand Merchant Bank analysts said the receding fear over the state of the global economy had allowed a risk-on sentiment to emerge.

The analysts said although risk aversion was reduced‚ "rand outperformance" was "difficult to justify"‚ which could hold back further gains against the dollar on the day.

At 8.50am‚ the rand was at R15.7385 against the dollar from a previous close of R15.7230.

Against the euro‚ the rand was at R17.5618 from R17.5437 and was at R22.6712 against the pound from R22.7051 previously.

The euro was at $1.1158 from $1.1156 previously.

On Wednesday‚ Statistics SA will release consumer price index (CPI) data‚ which are likely to provide direction.

- TMG Digital/BDlive