Rand extends losses ahead of current account data

The rand extended losses in early trade on Thursday ahead of second-quarter current account data that could provide clues on South Africa’s economic health.

At 0637 GMT, the rand traded at R19.22 against the dollar.

The dollar last traded around 0.03% stronger against a basket of global currencies.


“(The dollar/rand exchange rate) failed in its repeated attempts to break 19.30 yesterday, but pressure will resume this morning,” said Rand Merchant Bank analysts in a research note.

The rand has weakened for the better part of this week, partly fuelled by the repeat of the country’s worst rolling blackouts implemented by the state power utility Eskom, which often leave businesses and households in the dark for up to 12 hours a day.

At 0900 GMT, local investors will turn towards the South African Reserve Bank for second-quarter current account data.

Central bank data earlier on Thursday showed South Africa’s net foreign reserves fell to $55.444 billion by the end of August from $55.626 billion in July.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 4 basis points to 10.450%.

Source: moneyweb.co.za