JOHANNESBURG: The South African rand was little changed in early trade on Thursday, holding onto gains made since the start of the week. At 0611 GMT, the rand traded at 19.0975 against the dollar , the same as its previous close.
The dollar was also broadly unchanged against a basket of global currencies.
On Wednesday, the rand briefly strengthened below 19 to the dollar for the first time in three weeks, boosted by a weakening greenback and an easing of rolling power cuts.
Investors will look to South Africa’s first-quarter current account balance at 0900 GMT and April manufacturing data at 1100 GMT for clues about the health of Africa’s most industrialised economy.
“Strong rand gains continue, yet USD/ZAR now faces the tough test of breaking through the psychologically important 19.00 level,” said Rand Merchant Bank analysts in a research note.
South African rand extends gains ahead of GDP data
The rand has been recovering after a tumultuous May where it lost over 7% against the dollar on record power cuts and US allegations that South Africa had supplied arms to Russia.
Nonetheless, investor sentiment remains sour with survey data on Wednesday showing business confidence at a three-year low.
Comments
Comments are closed for this article.