Rand extends data-driven gains

THE RAND maintained a data-fuelled rally yesterday sparked in the previous session by better than expected current account figures and a softer inflation print. At 5pm, the rand was bid at R12.5014 to the dollar, 8.84c firmer than at the same time on Wednesday, having closed at R12.57 overnight in New York. “We’re seeing strength against all its frontier market currency peers, not just the dollar,” said IG South Africa senior market analyst Shaun Murison, who said that if the rand remained below R13, it could make a move to R12.30. – Reuters

THE RAND maintained a data-fuelled rally yesterday sparked in the previous session by better-than-expected current account figures and a softer inflation print.

At 5pm, the rand was bid at R12.5014 to the dollar, 8.84c firmer than at the same time on Wednesday, having closed at R12.57 overnight in New York, in a run that has been broad-based.

“We’re seeing strength against all its frontier market currency peers, not just the dollar,” said IG South Africa senior market analyst, Shaun Murison, who said if the rand remained below R13 to the dollar, it could make a move to R12.30.

On Wednesday, 2016 fourth quarter current account data showed the financial deficit was at its smallest in nearly six years while February consumer inflation retreated to 6.3 percent from 6.6 percent.