Rand at two-week high af­ter data re­vised

Weekend Argus (Saturday Edition) - - BUSINESS -

THE rand re­cov­ered to two week highs against the dol­lar yes­ter­day, lifted by a re­vi­sion of trade data which re­veals a much nar­rower deficit than pre­vi­ously stated.

How­ever, mar­ket relief could be fleet­ing as the coun­try re­lies heav­ily on cap­i­tal flows which are prone to vo­latil­ity, to plug the gap.

The rand pushed to 10.1205 ver­sus the green­back ear­lier yes­ter­day, its strong­est since Novem­ber 4, but came back to trade at 10.1775, up 0.2 per­cent from Thurs­day’s close.

Gov­ern­ment bonds were also firmer, with the yield for the pa­per in 2026 slid­ing 12 ba­sis points on the day to 8.095 per­cent.

The yield for the bond due in 2015 at the shorter end of the curve fell by the same mar­gin to 6.03 per­cent.

The rand was trad­ing around 10.3500/dol­lar late on Thurs­day be­fore the na­tional rev­enue ser­vice said it had cut South Africa’s 2012 trade deficit to about a third of the pre­vi­ously stated short­fall af­ter in­cor­po­rat­ing pre­vi­ously ex­cluded trade with its neigh­bours.

It halved the cu­mu­la­tive short­fall for the year to Septem­ber to about R64 bil­lion, a move which should re­duce the cur­rent ac­count gap for the coun­try, which at around 6 per­cent of GDP re­mains a weak spot for the rand. – Reuters

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