* Rand firm but still open to weaker levels
* 2026/2015 spread at over 200 basis points
JOHANNESBURG, June 6 (Reuters) – The rand gained one percent
against the dollar in early Wednesday trade, strengthening for
the third straight day from last week’s three-year lows on the
back of firmer commodity prices.
Dealers said the currency was going through a natural
pull-back from oversold levels at 8.71 last week but would be
likely to encounter resistance at 8.30.
The rand was up 0.8 percent at 8.3685 to the dollar
at 0605 GMT, off a 8.4350 close in New York on Tuesday.
“We are pleased with the brief retracement we have seen –
it’s a long time overdue. Look to accumulate on the dips as the
global backdrop has not really improved,” said Brigid Taylor
from Nedbank.
Investors’ fears about holding risky assets in the global
environment have decreased slightly but they are still buying
heavily into safe havens such as U.S. Treasuries, dealers said.
“For now the rand remains open up to 8.60 with support at
8.23,” Taylor added.
Investors will focus on Wednesday on a European Central Bank
rate decision. It is expected to hold back from policy moves but
may indicate a readiness to cut interest rates as early as next
month.
Continued…
