South African rand broadly steady at end of mixed week

Login

Register

http://www.clubofmozambique.com/

South African rand broadly steady at end of mixed week

10:55 CAT | 28 Jul 2023

The South African rand was broadly steady in early trade on Friday, at the end of a mixed week in which it started with strong gains before losing some steam.

At 0700 GMT, the rand traded at 17.8675 against the dollar, about 0.1% weaker than its previous close after earlier trading slightly stronger.

“The rand has still had a reasonable week compared to most currencies. Unless it depreciates beyond the 17.9000 mark, it will end the week up against the dollar, which is quite a result, given that most currencies, including the majors, have lost ground,” ETM Analytics said in a research note.

ETM linked the rand’s more than 1% fall on Thursday to the dollar surging on upbeat U.S. economic data and traders covering short positions ahead of the weekend.

The rand is still up more than 5% against the greenback this month.

Around 1200 GMT the National Treasury is expected to release monthly budget data for June.

Analysts polled by Reuters predict a 36.75 billion rand surplus, versus a deficit of 16.41 billion in May, though the data is subject to large seasonal fluctuations and rarely moves markets.

South Africa’s benchmark 2030 government bond was weaker in early deals, the yield up 7 basis points to 10.285%.

Source: File photo: Reuters