Share

Rand firms, local data caps gains

Johannesburg - The rand firmed close to half a percent against the dollar early on Wednesday as the US currency floundered, dragged lower by weaker share prices and worries over a nuclear deal with Iran.

By 08:45 the rand had gained 0.49% to R12.0725/$, from a close of R12.1325 overnight in New York, boosted slightly after the trade deficit narrowed sharply in February.

"The downside might extend into this morning but does not seem to have legs to sustain past 12.00," said John Cairns, a currency trader with Rand Merchant Bank.

The trade deficit narrowed to R8.48bn in February from R24.22bn in January, after a substantial rise in exports, but was still wider than expected.

READ: February trade deficit narrows to R8.48bn

Traders expect the local unit to come under pressure as domestic growth prospects remain weak, exacerbated by crippling power shortages and the still wide current account deficit.

"Local data has been unambiguously poor... optimism over a narrowing in the current account deficit may be overdone," Cairns added.

Government bonds were flat in early trade, with the highly-trade instrument due in 2026 flat at 7.77%.

At 12:00 Finance Minister Nhlanhla Nene announces the government's budget deficit estimate for the 2014 to 2015 fiscal year ending March 31.

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
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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