The rand was on a much firmer footing on Thursday morning‚ helped by the steady flow of improving local data and more stable global markets.
The local currency inched towards R12.50/$‚ a level last seen in 2015‚ and brought gains so far in March to just more than 4%.
SA’s current account deficit narrowed to 1.7% of GDP in the fourth quarter‚ from 3.8% in the third‚ the best level in six years‚ boosting the value of the rand.
The local currency has also profited from broad weakness in the dollar‚ which has been hurt by the expectation that the Federal Reserve will increase rates gradually during 2017.
The stronger rand helps rein in inflation‚ which decelerated to an annual rate of 6.3% in February‚ from 6.6% in January.
The benign inflation data led to the growing expectation‚ at least among some economists‚ that the Reserve Bank’s monetary policy committee could lower the repurchase rate in the second half 2017.
Nedbank economists expect the central bank to start easing monetary policy in the second of the year if the rand continues on its strengthening path.
At 9.01am‚ the rand was at R12.5387 against the dollar from R12.5655. The rand was at R13.5405 against the euro from R13.5586 and at R15.6805 against the pound from R15.6885.
The euro was at $1.0799 from $1.0792.
Rand closes in on R12.50/$‚ its best level since 2015
The rand was on a much firmer footing on Thursday morning‚ helped by the steady flow of improving local data and more stable global markets.
The local currency inched towards R12.50/$‚ a level last seen in 2015‚ and brought gains so far in March to just more than 4%.
SA’s current account deficit narrowed to 1.7% of GDP in the fourth quarter‚ from 3.8% in the third‚ the best level in six years‚ boosting the value of the rand.
The local currency has also profited from broad weakness in the dollar‚ which has been hurt by the expectation that the Federal Reserve will increase rates gradually during 2017.
The stronger rand helps rein in inflation‚ which decelerated to an annual rate of 6.3% in February‚ from 6.6% in January.
The benign inflation data led to the growing expectation‚ at least among some economists‚ that the Reserve Bank’s monetary policy committee could lower the repurchase rate in the second half 2017.
Nedbank economists expect the central bank to start easing monetary policy in the second of the year if the rand continues on its strengthening path.
At 9.01am‚ the rand was at R12.5387 against the dollar from R12.5655. The rand was at R13.5405 against the euro from R13.5586 and at R15.6805 against the pound from R15.6885.
The euro was at $1.0799 from $1.0792.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos