The rand was steady on Friday as markets reviewed a range of domestic data for clues on the health of Africa’s most industrialised economy.
The rand traded at 16.2250 against the dollar in afternoon trade, little changed from its previous close.
US, Iran agreement
The dollar steadied against other major currencies and was on track to end the week lower after reports that the US and Iran had agreed a potential ceasefire extension.
“News of an agreement between the US and Iran to extend the current ceasefire for a further 60 days saw the dollar soften, and risk sentiment improve,” said Andre Cilliers, currency strategist at TreasuryONE.
Like other risk-sensitive currencies, the rand often takes its cues from global drivers and has been largely influenced by shifting market sentiment in recent months.
Trade surplus
South Africa recorded a trade surplus of R15.16-billion in April, while National Treasury data showed a budget deficit of R63.57-billion in the same month.
Data from the South African Reserve Bank showed M3 money supply growth at 9.82% in April, while private sector credit growth stood at 9.20%.
On the JSE, the Top-40 index was steady.
The benchmark 2035 government bond was firmer, with the yield down 4.5 basis points at 8.41%.
- The South African rand remained steady at 16.2250 against the US dollar as markets digested domestic economic data.
- The US dollar softened following reports of a potential 60-day ceasefire extension agreement between the US and Iran, boosting risk sentiment globally.
- South Africa posted a trade surplus of R15.16 billion in April but simultaneously recorded a budget deficit of R63.57 billion for the month.
- April data showed M3 money supply growth at 9.82% and private sector credit growth at 9.20%, indicating ongoing credit expansion.
- The JSE Top-40 index was stable, while the benchmark 2035 government bond yield decreased by 4.5 basis points to 8.41%.
