JOHANNESBURG: The rand firmed within a recent range against the dollar in early Monday trade, boosted by encouraging PMI data out of China, South Africa's leading trade partner.
However the currency was trading within levels set on Friday, with rand bulls hesitant ahead of key domestic and offshore data that could weigh this week.
South Africa will release its own Purchasing Managers Index data for November at 0900 GMT, and then vehicles sales numbers at around 1100 GMT.
Investors will be more focused on third quarter current account data to be released by the South African Reserve Bank on Tuesday morning.
The revenue service has changed its trade data calculations since September and investors will be keen to see how big an impact the new methodology has on the current account, a historically sore point for the rand. At 0640 GMT, the rand was 0.26 percent firmer at 10.1650 to the dollar.
"The issue of our twin deficits is still a big reason why offshore investors are reducing both bond and equity holdings and any weakening on either of the two fronts will put even more pressure on an already fragile rand," Rand Merchant Bank bond trader Deon Kohlmeyer said in a note. Yields on government bonds were up half a basis point to 8.33 percent on the benchmark 2026 bond.
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