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Rand softens as credit extension slows

Johannesburg - The rand was softer against the dollar on Friday, shedding a couple of cents after central bank data showed a slowdown in private sector credit extension, suggesting there might not be scope for more interest rate hikes this year.

The rand could later extend losses if April trade numbers due out at 14:00 show a sharper-than-expected deficit, as this would point to continued pressure on the current account.

By 08:35 the rand was trading at 10.4445 per dollar, down 0.28% from Tuesday's close.

The SA Reserve Bank (Sarb) reported that growth in credit demand from South Africa's private sector slowed to 8.27% year-on-year in April from a revised 8.73% in March.

This adds to recent data illustrating the economy remains under stress, and could tie the Sarb's hands on raising interest rates, despite an upturn in inflation pressure.

Government bonds edged lower in early trade, with yields for the heavily traded 2026 and 2015 issues each adding a basis point to 8.19% and 6.57% respectively.
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Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
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
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Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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