The South African (SA) Rand was steady in early trade on Friday, holding near its previous close as investors awaited domestic trade balance data for clues to the health of the external sector.
The Rand was trading at 16.4975 against the Dollar, a whisker away from its previous close.
SA’s Revenue Service is set to release June trade balance figures later in the day.
“Today’s release will show whether May’s $109 million deficit was temporary or the beginning of a weaker external position,” ETM Analytics said in a research note.
SA’s oil import bill and mineral exports would heavily influence the data, it added.
The Rand gained about 1% on Thursday, returning to its range before the SA Reserve Bank surprised investors and economists by keeping unchanged its main lending rate last week, a move that weighed on the currency.
ETM Analytics said the rebound was aided by other central banks also holding rates, a retreat in oil prices below $90 a barrel and the return of a measure of calm to the Middle East.
On the Johannesburg Stock Exchange, the Top-40 index was up 0.6%.
SA’s benchmark 2035 government bond strengthened in early deals, as the yield fell 7 basis points to 8.545%.
–Reuters–
