Latest news with #rand
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%.
Reuters
3 days ago
- Business
- Reuters
South African rand holds gains after SARB focuses on lower inflation target
JOHANNESBURG, May 30 (Reuters) - The South African rand held most of the previous day's gains in early trade on Friday, after the central bank stressed 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. Other factors that point to more rand resilience include a solid trade surplus, tight credit cycle and signs of prudence in government finances, the research firm added in a note. At 0650 GMT, the rand traded at 17.8425 against the dollar , about 0.1% weaker than Thursday's closing level. Weighing against the rand was a stronger dollar on global markets . The benchmark 2035 government bond was stronger in early deals, as the yield fell 4 basis points to 10.13%.
Reuters
4 days ago
- Business
- Reuters
South African rand steady before interest rate decision, PPI data
JOHANNESBURG, May 29 (Reuters) - The South African rand was steady in early trade on Thursday, ahead of a much-anticipated interest rate decision by the South African Reserve Bank (SARB) and monthly producer inflation figures. At 0702 GMT, the rand traded at 17.92 against the dollar , little changed from Wednesday's closing level. Statistics South Africa will publish April domestic producer inflation figures at 0930 GMT, and Nedbank economists said in a research note that they expect it to have remained steady at 0.5%. Investor attention will be pinned on an interest rate decision by the central bank expected around 1300 GMT. The majority of economists polled by Reuters expect the bank to trim its main lending rate (ZAREPO=ECI), opens new tab by 25 basis points, though a significant minority think the rate could be left unchanged. Inflation (ZACPIY=ECI), opens new tab is currently below the central bank's target range, though policymakers have stressed risks from U.S. President Donald Trump's trade war and domestic politics. "The upside risks to the outlook have subsided since the March meeting," the Nedbank note said. South Africa's benchmark 2030 government bond was also little changed in early deals, with the yield at 8.78%.
Reuters
5 days ago
- Business
- Reuters
South African rand stable as traders wait for interest rate decision
JOHANNESBURG, May 28 (Reuters) - The South African rand was flat in early trade, as traders held off from big bets before the central bank's interest rate decision on Thursday. At 0645 GMT, the rand traded at 17.9725 against the dollar , a whisker away from Tuesday's closing level. The South African Reserve Bank will announce its latest monetary policy decision at around 1300 GMT on Thursday. The majority of economists polled by Reuters expect the bank to trim its main lending rate (ZAREPO=ECI), opens new tab by 25 basis points, though a significant minority think the rate could be left unchanged. Inflation (ZACPIY=ECI), opens new tab is currently below the central bank's target range, though policymakers have stressed risks from U.S. President Donald Trump's trade war and domestic politics. South Africa's benchmark 2030 government bond was slightly weaker in early deals, with the yield up 2 basis points to 8.86%.
Reuters
6 days ago
- Business
- Reuters
South African rand weakens, interest rate decision ahead
JOHANNESBURG, May 27 (Reuters) - South Africa's rand weakened early on Tuesday, with investors focussed firmly on the central bank's impending interest rate decision later this week. At 0827 GMT, the rand traded at 17.9225 against the dollar , about 0.3% softer than its previous close. Economists polled by Reuters expect the South African Reserve Bank (SARB) to cut its main interest rate by 25 basis points to 7.25% on Thursday. South Africa's inflation stayed below the SARB's target range of 3% to 6% in April while the local currency has recovered from its recent losses to trade below 18 per dollar. Central bank data earlier in the day showed South Africa's composite leading business cycle indicator rose 1.1% month on month in March. On the stock market, the Top-40 (.JTOPI), opens new tab index was little changed. South Africa's benchmark 2030 government bond was stronger in early trading, with the yield down 2.5 basis points at 8.865%.
