Johannesburg - SA reported an unexpected trade deficit for October, data released by the SA Revenue Service on Monday showed.

Exports for October were R44.09bn while imports were R50.80bn, resulting in a deficit of R6.7bn. This was in comparison to a R3.87bn surplus in September.

Most economists expected October's trade account to have recorded a mild surplus of around R0.5bn.

The news saw the rand weaken from 7.41 to 7.44 against the dollar, and from 11.14 to 11.18 against the euro.

"The market was a bit surprised. We had been expecting a small surplus," a local currency trader said. "But we're also seeing some dollar strength at the moment which has added to the weakness in the rand."

Nedbank economist Isaac Matshego said the deficit may trigger continued pressure on the rand. "This is a very big number and is very surprising. It is obviously not good for the current account," he said.

"It's a much bigger number than I had expected, and it won't be good for the rand," said Economist.co.za economist Mike Schüssler. "It's a pretty volatile number. The stronger rand would have encouraged greater imports."

- Fin24.com