South African rand edges up ahead of month-end economic data
- The rand traded at 16.3575 against the dollar , up roughly 0.3% from its previous close
JOHANNESBURG: The South African rand edged up in early trade on Wednesday ahead of a batch of month-end domestic economic data that could provide fresh signals on the health of Africa’s largest economy.
At 0716 GMT the rand traded at 16.3575 against the dollar , up roughly 0.3% from its previous close.
Data from the South African Reserve Bank showed M3 money supply growth accelerated to 8.89% in August from 8.57% in July. Private sector credit growth rose to 7.47% from 7.41% in July, exceeding the 6.90% forecast in a Reuters poll.
Later on Wednesday, the National Treasury, Statistics South Africa and the South African Revenue Service are due to release budget balance, producer inflation and trade balance figures respectively.
On the Johannesburg Stock Exchange, the Top-40 index was flat in early trade.
South Africa’s benchmark 2035 government bond strengthened, as the yield fell 7 basis points to 8.765%.
In common with other risk-sensitive currencies, the rand often takes cues from global drivers such as US economic indicators and monetary policy.
The greenback softened against a basket of currencies as investors awaited US inflation data for clues on the Federal Reserve’s next policy move.
The US personal consumption expenditures price index is due at 1230 GMT.