The South African (SA) Rand fell against a stronger Dollar in early trade on Friday, as traders awaited the release of monthly economic data from the Central bank, revenue service agency and National Treasury.
Rand traded at 15.90 against the Dollar, about 1% weaker than Thursday’s close.
The Dollar was up 0.4% against a basket of currencies, while gold, a major SA export, slumped over 4% on rumours the Federal Reserve could get a more hawkish than expected Chairperson.
The Dollar also received a lift after Republican and Democratic lawmakers hammered out a deal to stave off a looming government shutdown.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as United States policy in addition to local factors.
Data from the SA Reserve Bank showed that M3 money supply growth last month was 8.16%, down from 8.26% in November.
Private sector credit growth for December was 8.74%, well above November’s 7.79% and the 7.60% estimated in a Reuters poll.
Later in the day, SA’s revenue service agency and National Treasury are expected to publish trade and budget balance data respectively.
SA’s benchmark 2035 government bond was weaker in early deals, with the yield up 14.5 basis points to 8.11%.
–Reuters–
