Publications
Partners
“Trade balance data could end the recent bout of rand short covering. Although the rand did enjoy some broad-based short covering on Thursday‚ it also benefited from a more risk-on global trading environment and associated weaker US dollar backdrop‚” wrote Absa Capital analysts in a note.
The trade balance‚ which has been in deficit as growth in imports outstripped that in exports‚ is expected to show some improvement in May.
South Africa’s foreign trade balance with its non-Southern African Customs Union trading partners is expected to have recorded an R11.3bn deficit in May from a R15bn deficit in April‚ according to leading economists surveyed by I-Net Bridge.
At 11:49 the rand was bid at R9.9864/$ from Thursday’s close of R9.9371 and Wednesday’s close of R10.0911.
The local currency was bid at R13.0377/€ from its previous close of R12.9492 and was at R15.2235 against sterling from R15.1548 at its previous close.
The euro was bid at $1.3053 from $1.3023 at Thursday’s close.
“There is no real driver at the moment. Trade data‚ which is notoriously unpredictable‚ is due this afternoon and that could affect the rand‚” said a Johannesburg-based trader.
Meanwhile‚ Reserve Bank governor Gill Marcus said the rand exchange rate and wage pressures had overtaken food and oil price developments as the main upside risks to the inflation outlook.
