Publications
Partners
Johannesburg - The rand was a touch firmer on Friday, holding on to some gains made in the previous session that were fuelled by increased demand for bonds after better-than-expected inflation data.
The rally in government bonds continued, with the yield on the benchmark 2026 government bond falling 6.5 basis points to 7.835%, a level last seen on June 19.
The rand hit a session high of R9.9100 in early Friday trade, compared with a R9.9350 close in New York on Thursday.
However, the currency could be knocked by May trade data expected at 14:00. A widening shortfall on the local trade account has previously hit the rand as it highlights fragility in South Africa's economy.
"We are doubtful that yesterday's rand strength will be continued into the weekend, because this afternoon's trade balance reading is likely to reemphasise lingering current account deficit concerns," said Absa Capital in a morning note.
"The rand remains relatively sensitive to disappointing trade data, thereby implying that if today's balance does prove to be worse than expected, the rand is likely to come under a renewed bout of selling pressure."
Data on private sector credit released by the Reserve Bank at 10:00 showed slower growth in May, likely the result of banks having stricter lending criteria for consumers, analysts said.
The Reserve Bank will make comments about the economy and monetary policy at its annual report at 10:00.
National Treasury is also due to release data on the country's revenue and spending for the first two months of the 2013/14 fiscal year, which is likely to show a larger shortfall than during the same period last year.
Fuel prices are likely to be adjusted higher for July as the weak rand makes oil imports more expensive. The price change is due at around 13:00.
The rally in government bonds continued, with the yield on the benchmark 2026 government bond falling 6.5 basis points to 7.835%, a level last seen on June 19.
The rand hit a session high of R9.9100 in early Friday trade, compared with a R9.9350 close in New York on Thursday.
However, the currency could be knocked by May trade data expected at 14:00. A widening shortfall on the local trade account has previously hit the rand as it highlights fragility in South Africa's economy.
"We are doubtful that yesterday's rand strength will be continued into the weekend, because this afternoon's trade balance reading is likely to reemphasise lingering current account deficit concerns," said Absa Capital in a morning note.
"The rand remains relatively sensitive to disappointing trade data, thereby implying that if today's balance does prove to be worse than expected, the rand is likely to come under a renewed bout of selling pressure."
Data on private sector credit released by the Reserve Bank at 10:00 showed slower growth in May, likely the result of banks having stricter lending criteria for consumers, analysts said.
The Reserve Bank will make comments about the economy and monetary policy at its annual report at 10:00.
National Treasury is also due to release data on the country's revenue and spending for the first two months of the 2013/14 fiscal year, which is likely to show a larger shortfall than during the same period last year.
Fuel prices are likely to be adjusted higher for July as the weak rand makes oil imports more expensive. The price change is due at around 13:00.
