News of a globally co-ordinated plan to pull Europe and the rest of the globe out of the credit mire, saw the rand gain over ten cents in early trade on Monday.

At 08.27am on Monday the rand was bid at 9.1496 to the dollar from a previous close of 9.2680. It was bid at 12.5055 to the euro from a previous 12.5688 and at 15.5560 against sterling from 15.8567 before.

The euro was bid at $1.3636 from $1.3570 overnight, while gold was quoted at $862.45 a troy ounce from $851.85/oz overnight.

RMB said in its morning commentary the rand is holding steady, but with the VIX index showing record readings again on Friday (76.94), previous resistances up to 9.4400 could be retested, but that there is also a positive picture that could emerge.

“But as mentioned before any break of 9.1600/9.1800 supports can see a deeper correction from the current rand oversold position,” they add.

The analysts feel that one bit of positive information could be the nationalisation of U.K. banks - which is due for announcement this morning - bringing some sort of solace to financial markets.

I-Net Bridge