Trade sur­plus pushes rand to 8-month high

Weekend Argus (Saturday Edition) - - LIFE -

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

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