Latest news with #rand
Reuters
3 days ago
- Business
- Reuters
South African rand edges up after coalition partner backs budget bill
JOHANNESBURG, July 22 (Reuters) - The South African rand was slightly stronger on Tuesday after the second-biggest party in the coalition government said it would vote in support of the last major piece of budget legislation. The Democratic Alliance (DA) said it would back the Appropriation Bill in parliament on Wednesday after President Cyril Ramaphosa acceded to one of its demands by firing a minister it had accused of misconduct. The budget has been held up for months by wrangling between the DA and Ramaphosa's African National Congress party. At 1515 GMT the rand traded at 17.6050 against the dollar , up 0.1% on Monday's closing level. Morgan Stanley said it had turned more bullish on South African government debt in the wake of the minister's removal, which it said had opened the door for political tensions to ease. South Africa's benchmark 2035 government bond gained on Tuesday, as the yield fell 14 basis points to 9.845%. Markets reacted little to a decline in a central bank business cycle indicator that gauges the local economic outlook. The leading indicator (ZALEAD=ECI), opens new tab fell 1.3% month-on-month in May, following a 0.6% decrease in April. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab closed down 0.4%.
Reuters
4 days ago
- Business
- Reuters
South African rand flat with inflation the week's main focus
JOHANNESBURG, July 21 (Reuters) - The South African rand held steady in early trade on Monday, with the main focus this week on inflation data that will influence the central bank's thinking on interest rates. At 0740 GMT the rand traded at 17.7075 against the dollar , unchanged from Friday's close. Statistics South Africa will release June inflation data on Wednesday, with analysts polled by Reuters expecting a modest rise to 3% year on year from 2.8% in May (ZACPIY=ECI), opens new tab. "A softer print could open the door for one last rate cut this year, while a firmer number would push that possibility further out," said Andre Cilliers, currency strategist at TreasuryONE. The South African Reserve Bank's next interest rate announcement is on July 31. The bank cut its repo rate by 25 basis points at its last meeting in May (ZAREPO=ECI), opens new tab, with inflation below its 3%-6% target range. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was up about 0.4% in early trade. The benchmark 2035 government bond was little changed in early deals, with the yield at 9.935%.
Reuters
15-07-2025
- Business
- Reuters
South African rand inches up before local mining data, US inflation print
JOHANNESBURG, July 15 (Reuters) - The South African rand edged up in early trade on Tuesday before the release of local mining production figures and as investors awaited U.S. inflation data due later in the day that could give clues on the Federal Reserve's interest rate path. At 0702 GMT, the rand traded at 17.8125 against the dollar , 0.5% firmer than Monday's close. Statistics South Africa will publish May mining production numbers (ZAMNG=ECI), opens new tab, (ZAGLD=ECI), opens new tab at 0930 GMT. Production fell 7.7% year-on-year in April, but analysts polled by Reuters and Nedbank economists expect it to have fallen by a smaller margin of 5.4% and 2.1% respectively this time around. "Despite marginal improvements, logistics remain a significant hindrance to production, particularly in the current context of subdued commodity prices and soft demand," Nedbank economists said in a research note. The greenback last traded flat against a basket of currencies as investors awaited U.S. consumer price data for June due at 1230 GMT on Tuesday. South Africa's benchmark 2035 government bond was flat in early deals, with the yield at 9.885%.
Reuters
14-07-2025
- Business
- Reuters
South African rand starts week muted as tariff uncertainty hangs over markets
JOHANNESBURG, July 14 - The South African rand was softer in early trade on Monday as investors mulled over U.S. President Donald Trump's latest tariff threats. At 0627 GMT the rand traded at 17.96 against the dollar , about 0.1% weaker than Friday's close. Trump on Saturday threatened to impose a 30% tariff on imports from two of the largest U.S. trading partners - the European Union and Mexico - beginning August 1. South Africa also faces the prospect of a 30% trade tariff on its exports to the United States as well as an additional 10% levy because of its membership of the BRICS group of developing nations. South Africa's statistics agency will release mining output (ZAMNG=ECI), opens new tab figures on Tuesday and retail sales (ZARET=ECI), opens new tab data on Wednesday that should provide clues to the health of Africa's most industrialised economy. Its benchmark 2035 government bond was weaker in early deals, as the yield rose 3 basis points to 9.905%.
Reuters
11-07-2025
- Business
- Reuters
South African rand subdued as investors await tariff updates and local data
JOHANNESBURG, July 11 (Reuters) - The South African rand took a knock against a firmer dollar in early trade on Friday, as global markets remained on edge over U.S. President Donald Trump's tariff threats. At 0713 GMT, the rand traded at 17.8550 against the dollar , about 0.7% weaker than Thursday's close, as traders shunned riskier markets. The greenback last traded about 0.2% stronger against a basket of currencies. Domestically-focussed investors will keep close tabs on updates from the government as it tries to negotiate a trade deal before an extended deadline of August 1, after which it faces a 30% trade tariff on its exports to the United States. South Africa also faces an additional 10% tariff because of its membership of the BRICS group of developing nations which Trump has described as "anti-American." This could further compound pressure on the already risk-sensitive rand, even as an ETM analytics research note said the currency was poised to benefit from an expected recovery in commodity prices. "South Africa's terms of trade have improved courtesy of the buoyancy of gold and platinum prices and the recent surge in copper prices," ETM analytics said in the note. "A study of commodity prices relative to the USD shows that the market is ripe for a USD correction and a recovery in commodity prices." South Africa is a major producer of precious metals and its rand like other commodity-linked currencies will be closely tracking developments from Washington following Trump's threat to impose a 50% tariff on copper imports to the U.S. Next week, the statistics agency will release mining output (ZAMNG=ECI), opens new tab and retail sales (ZARET=ECI), opens new tab data which will provide clues on the health of Africa's most industrialised economy. South Africa's benchmark 2035 government bond was also weaker in early deals, with the yield rising 4.5 basis points to 9.83%.
