Share

Rand benefits from dollar sell-off, stocks flat

Johannesburg - The rand recovered from its weakest in nearly a month in early trade on Friday as investors returned to long positions after marginally weaker-than-expected US growth data took pressure off risky currencies.

The Top-40 index on the Johannesburg Stock Exchange opened flat.

At 08:37 the rand firmed 0.47% to R13.83/$, having fallen as far as 13.8950 the previous day as most emerging currencies dropped in risk-averse trade.

The rand had threatened to touch 14.00 before a US report which showed that growth expanded at 1.5% in the third quarter, slightly less than forecast.

"There is a good chance that last night's dollar sell-off may extend to 13.75 this morning but probably no further. Unsurprisingly we have seen decent local importer demand for dollars over the past couple of days due to month-end covering," Standard Bank currency strategist Warrick Butler said.

Investors will be waiting for local trade data, due at 14:00, for clues on how to play their positions.

"We expect a smaller-than-consensus trade deficit reading today, which implies that the ZAR could enjoy some short covering if these data do surprise to the downside," Barclays economist Peter Worthington said.

Government bonds were broadly flat, with the yield on paper maturing in 2026 unchanged at 8.405%.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.87
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders