Latest news with #AndreCilliers
Reuters
3 days ago
- Business
- Reuters
South African rand falls back after strong gains
JOHANNESBURG, May 30 (Reuters) - The South African rand retreated on Friday following strong recent gains, but analysts said the outlook for the currency remained positive. The rand traded at 17.94 against the dollar at 1340 GMT, about 0.7% weaker than Thursday's closing level. The currency was hurt by dollar strength , as well as investor uncertainty over U.S. President Donald Trump's tariff war. "Local factors remain positive for the rand, but concerns over the U.S. fiscal debt, tariff uncertainty, and trade war fears are likely to see some consolidation between 17.70 and 18.00 (to the dollar) in the short term," Andre Cilliers, currency strategist at TreasuryONE, said in a research note. The rand advanced on Thursday, buttressed by the central bank stressing its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was "more attractive" and said it would continue to consider scenarios based on that target at future rate meetings. "Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand," ETM Analytics said. On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab last traded down 0.7%. The benchmark 2035 government bond was marginally stronger, as the yield fell 1.5 basis points to 10.155%.
Business Recorder
3 days ago
- Business
- Business Recorder
South African rand falls back after strong gains
JOHANNESBURG: The South African rand retreated on Friday following strong recent gains, but analysts said the outlook for the currency remained positive. The rand traded at 17.94 against the dollar at 1340 GMT, about 0.7% weaker than Thursday's closing level. The currency was hurt by dollar strength, as well as investor uncertainty over U.S. President Donald Trump's tariff war. 'Local factors remain positive for the rand, but concerns over the U.S. fiscal debt, tariff uncertainty, and trade war fears are likely to see some consolidation between 17.70 and 18.00 (to the dollar) in the short term,' Andre Cilliers, currency strategist at TreasuryONE, said in a research note. The rand advanced on Thursday, buttressed by the central bank stressing its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was 'more attractive' and said it would continue to consider scenarios based on that target at future rate meetings. 'Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand,' ETM Analytics said. On the Johannesburg Stock Exchange, the Top-40 index last traded down 0.7%. The benchmark 2035 government bond was marginally stronger, as the yield fell 1.5 basis points to 10.155%.
IOL News
07-05-2025
- Business
- IOL News
Rand fluctuates amid escalating India-Pakistan tensions
On Wednesday morning, amid escalating tensions between India and Pakistan, India launched military strikes on targets in Pakistan, meeting a strong response from the latter. Image: Ai The local currency has lost some ground as India and Pakistan fire targets at each other, dropping some 20c between its New York close and mid-morning on Wednesday. On Wednesday morning, amid escalating tensions between India and Pakistan, India launched military strikes on targets in Pakistan, meeting a strong response from the latter. Andre Cilliers, currency strategist at TreasuryONE, said the rand, which had traded below the R18.15 level in New York on Tuesday night, was at R18.34 mid-morning on Wednesday as risk sentiment slips on the back of the Indian attack on Pakistan. Cilliers added that long rand positions have also been trimmed ahead of the Federal Reserve's interest rates decision, which will be out overnight. Anchor Capital's chief investment officer, Nolan Wapenaar, said the company was watching South Africa's terms of trade and a returning risk appetite from global investors. China, South Africa's largest trading partner, officially said that it 'finds India's military operation early this morning regrettable'. China and India and both major trading partners with South Africa, with all three member countries of the original Brazil, India, Russia, China and South Africa trading bloc, which was expanded last year to include other emerging markets. South Africa's largest trading partner is China, with South Africa's total bilateral trade with China soaring from $1.34 billion in 2000 to $34.18 billion in 2023, according to the Institute of Security Studies. Meanwhile, The Observatory of World Economy stated that, in February this year, that trade between India and South Africa was worth close on $1bn. The firefight between India and Pakistan did not, however, drop the value of the rand to the one-month low seen on April 8, when it went about the key R19 level on the back of US President Donal Trump's tariff announcements and subsequent 90-day pause on their implementation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
Zawya
25-04-2025
- Business
- Zawya
South African rand stable as investors await budget clarity
South Africa's rand was steady on Friday as investors awaited clarity on a disputed national budget which has roiled domestic markets. At 1236 GMT, the rand traded at 18.8125 against the dollar , near its Wednesday closing level of 18.81. South Africa's biggest political parties have clashed over a proposal to raise the value-added tax rate by 1 percentage point over the next two years. The VAT increase was withdrawn on Thursday and domestic-focused investors are awaiting details on the next steps in the budget process. "The scrapping of the VAT increase and the subsequent questions on where Treasury is going to find the shortfall in the budget has put the rand under some renewed pressure," said Andre Cilliers, currency strategist at TreasuryONE. Like other risk-sensitive currencies, the rand often takes its cue from global factors and domestic drivers. In addition to the budget dispute, the rand has experienced bouts of volatility linked to uncertainty over U.S. President Donald Trump's tariff plans. South Africa's President Cyril Ramaphosa said on Thursday he had spoken to Trump and discussed fostering good relations between the two countries, which have soured since Trump took office in January. On the stock market, both the Top-40 index and the broader all-share index were last trading about 0.7% higher. South Africa's benchmark 2030 government bond was also stronger, with the yield down 4 basis points at 8.83%. (Reporting by Tannur Anders, Sfundo Parakozov and Bhargav Acharya; Editing by Jacqueline Wong and Susan Fenton)
Reuters
25-04-2025
- Business
- Reuters
South African rand stable as investors await budget clarity
JOHANNESBURG, April 25 (Reuters) - South Africa's rand was little changed in early trade on Friday as investors awaited clarity on a disputed national budget which has roiled domestic markets in recent weeks. At 0644 GMT, the rand traded at 18.82 against the dollar , near its Wednesday closing level of 18.81. "This morning, the rand is quoted softer ... we expect to see some consolidation between R18.60 and R19.00 ahead of the long weekend," said Andre Cilliers, currency strategist at TreasuryONE. South Africa's biggest political parties have clashed over a proposal to raise the value-added tax (VAT) rate by one percentage point over the next two years. The VAT increase was withdrawn on Thursday and domestic-focused investors seek clarity on the details of the budget. "The scrapping of the VAT increase and the subsequent questions on where Treasury is going to find the shortfall in the budget has put the rand under some renewed pressure," Cilliers said. Like other risk-sensitive currencies, the rand often takes its cue from global factors and domestic drivers. In addition to the budget spat, the rand has experienced bouts of volatility linked to uncertainty over U.S. President Donald Trump's tariff plans. South Africa's benchmark 2030 government bond was stronger in early deals, with the yield down 2.5 basis points to 8.845%.
