Rand ends 3-day slide as dollar slows down

Johannesburg - The rand firmed for the first session in three days against the dollar on Tuesday, as the greenback took a breather after a strong run that saw it hit multi-year highs against major currencies.

The local currency barely moved after central bank data showed growth in credit demand by the private sector and money supply both slowed on a year-on-year basis in August.

READ: Credit growth slows to 8.78%

At 08:37 the rand traded at R11.2425/$, 0.36% stronger than Monday's close in New York.

Government bonds were largely steady ahead of a weekly debt auction at 11:00, with the yield for the benchmark paper due in 2026 quoted 2 basis points lower at 8.305%.

Dealers expected the rand to come under renewed pressure on the back of a likely wider August trade deficit, due out at 14:00.

"(The trade number) should provide more impetus for a weaker currency, more so if we see an unwind in fixed income," Standard Bank forex trader Oliver Alwar said.

"The general theme remains risk averse and weak fundamentals do not support."