Trade surplus pushes rand to 8-month high
THE rand rallied to its firmest against the dollar in more than eight months after recording a larger-than-expected June trade surplus yesterday.
The rand reached 13.8905 against the dollar, its strongest level since November 20, but pared gains to 1.06 percent at R13.9870 by 1347 GMT.
The currency breached the R14.0000 mark for the first time since November as data showed the fourth straight monthly trade surplus, adding to a record in May.
“This alongside the improvement in portfolio investment flows in recent months should continue to provide further impetus to the rand which continues to benefit from ultra- accommodative monetary policy stances,” said BNP Paribas Securities South Africa economist Jeffrey Schultz.
Government bonds were also higher with the yield on the 2026 benchmark dipping five and a half basis points to 8.69 percent.
Stocks were weaker, with the benchmark Top-40 index down 0.65 percent and the broader All-share index 0.55 lower an hour before the close of trading. – Reuters