* Rand will take its cue from abroad
* Currency could test 7.54 against the dollar
* ECB to pump more liquidity
JOHANNESBURG, Feb 27 (Reuters) – South Africa’s was
little changed on Monday against the dollar as local traders
looked to the euro, the currency of its biggest trading partner,
for more direction.
The European Central Bank (ECB) will offer this week, for
the second time, an unlimited volume of cheap three-year loans
to European banks, which could see the rand strengthen in tandem
with the euro.
“It is going to be very euro dependent, whatever the euro
does, (it will follow), if the euro pushes on to 1.3460-80, I
think the rand will test 7.54-56,” said Jim Bryson, a trader at
Rand Merchant Bank.
The rand was trading at 7.6045 against the dollar
at 0654 GMT, compared with Friday’s New York close of 7.595.
Traders are also likely to watch final GDP number for 2011
which could also give a further outlook for interest rates in
Africa biggest economy. Statistics South Africa releases
economic growth data on Tuesday.
The National Treasury cut its 2012 economic growth forecast
to 2.7 percent from an October projection of 3.4 percent, while
it estimated 2011 growth at 3.1 percent.
Continued…
