Narrowing trade deficit buoys South African rand

30 Dec, 2014

JOHANNESBURG: South Africa's rand edged firmer against the dollar on Tuesday after the country's trade deficit contracted sharply following lower imports of mineral products.

The currency had appreciated 0.31 percent to an intraday low of 11.5925 against the dollar by 1420 GMT.

South Africa's revenue authority said on Tuesday the trade deficit shrunk to 5.7 billion rand ($491 million) in November from a revised 21.63 billion rand shortfall in the previous month.

The November data brings the cumulative gap for the year to 101.1 billion rand, compared with 73.2 billion over the same period last year.

Ballooning budget and current account deficits have kept the local currency on the backfoot.

Yields on local bonds were barely moved, with benchmark government issue flat at 8.015 percent, down just 2 basis points.

Copyright Reuters, 2014

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