* Rand firmer within a range against dollar
* Govt switch auction results at 0930 GMT
* Producer inflation data due at 0930 GMT
JOHANNESBURG, June 28 (Reuters) – The rand strengthened
against the dollar in early Thursday trade, following a firmer
euro toward a third day of slight gains, with investors shying
away from big positions while waiting for policy clarity from
abroad and locally.
The ruling ANC holds its third day of a policy conference on
Thursday. So far the meetings have not led to a concrete
outcomes on matters such as increased state control in the
economy, but investors remain nervous.
“The conference is not really impacting markets but I
suggest that further policy uncertainty can only be a negative
for the rand,” said Christopher Shiells, emerging market analyst
at Informa Global Markets.
A summit of European leaders later in the session may drive
global markets and direct risk sentiment.
The rand was up 0.6 percent to 8.39 at 0643 GMT, compared to
a 8.44 close in the New York market but still within Wednesday’s
range.
Dealers say they expect little resolution from the summit
and therefore prefer to hold long dollar positions, which should
keep the rand around its current level of 8.40.
Continued…
