Share

Rand firms as it continues recovery from Brexit-triggered slump

Johannesburg - The rand firmed in early trade on Monday as it continued its recovery from a Brexit-triggered slump, but traders remained wary before a slew of local and global economic data later in the week.

At 07:45, the rand traded at R14.498 to the dollar, 0.49% firmer than its New York close on Friday.

The currency had got support on Friday from bets that leading central banks would keep rates low to minimise the damage to the global economy after Britons voted to exit the European Union.

Traders said they would now be looking for information on the health of that economy as the week unfolded.

"Data has been largely ignored in the past two weeks but there is no getting away from Friday’s US payrolls data," Rand Merchant Bank analyst John Cairns said in a note.

Cairns said locally, focus was on huge capital inflows after Johannesburg Stock Exchange (JSE) data showed R19bn of bond inflows in the past two weeks and R61bn of equity flows over the past month.

"What’s driving this is unclear, although we do know that other emerging markets are also seeing large inflows, but perhaps not on such a massive scale. Whatever the cause, they are a massive driver of rand gains. Whether or not they will sustain is another question entirely."

The JSE will later on Monday release data on foreigners' buying and selling of South African bonds and stocks. Also expected in the week are local consumer confidence and business confidence data.

In fixed income, the yield for the benchmark instrument due in 2026 was down 2.5 basis points to 8.67%.

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
23.86
+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