Rand Firms 0.5% as South African Traders Digest Month-End Data
By Aboki Forex —
The South African rand strengthened about 0.5% against the US dollar on Wednesday as investors worked through a batch of month-end domestic economic data. At 1432 GMT, the rand traded at 16.3250 per dollar, firmer than its previous close.
The data came from several fronts. The South African Reserve Bank, the National Treasury, Statistics South Africa and the South African Revenue Service all released numbers that gave traders clues on the health of the economy.
Money Supply and Credit Growth
Reserve Bank figures showed M3 money supply growth accelerated to 8.89% in August from 8.57% in July. Private sector credit growth edged up to 7.47% from 7.41%. That beat the 6.90% forecast in a Reuters poll.
Producer Prices and Trade
Traders also assessed the August budget balance, producer inflation and trade balance figures. Growth in producer prices slowed in August. The trade surplus was wider than analysts had expected in a Reuters poll.
Equities and Bonds
On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2%. South Africa's benchmark 2035 government bond also strengthened, with the yield falling 10.5 basis points to 8.73%.
The rand's move came as emerging market currencies stayed sensitive to United States rate expectations and domestic data flow. For Nigerian businesses and investors tracking peer emerging markets, the rand's firming offers a reference point on how commodity-linked African currencies are reacting to month-end data releases.