Market News
South African rand strengthens slightly ahead of month-end data - REUTERS
JOHANNESBURG, Feb 27 (Reuters) – The South African rand edged up in early trade on Friday as traders awaited the release of monthly economic data from the central bank, revenue service agency and National Treasury for clues on the health of Africa’s largest economy.
At 0708 GMT the rand traded at 15.8725 against the dollar, up roughly 0.3% from Thursday’s close.
The dollar =USD was flat against a basket of currencies, with gold – a major South African export – also broadly steady but set for its seventh straight month of gains.
Data from the South African Reserve Bank showed that M3 money supply growth last month was 7.44%, down from 8.16% in December. Private sector credit growth for January was 8.83%, well above December’s 8.74% but below the 8.84% estimated in a Reuters poll.
Later in the day, South Africa’s revenue service agency and National Treasury are expected to publish trade and budget balance data respectively.
On the Johannesburg Stock Exchange, the Top-40 index was last up 1.1%.
South Africa’s benchmark 2035 government bond was slightly stronger in early deals as the yield dropped by 1.5 basis points to 7.87%.
“While sentiment (in local assets) is positive for now, any shift in commodity prices, global risk appetite or domestic politics could test the sustainability of the recent strength,” said TreasuryONE currency strategist Wichard Cilliers.
