The South African rand appreciated slightly at the start of the session on Friday, as investors awaited the publication of monthly economic data from the central bank, the tax agency and the National Treasury, in order to obtain indications on the health of Africa’s largest economy.
At 0708 GMT, the rand was trading at 15.8725 per dollar, up about 0.3% from Thursday’s close.
The dollar was flat against a basket of currencies, while gold – a major South Africa export – was broadly unchanged but poised for its seventh consecutive month of gains.
Figures from the South African Reserve Bank showed that M3 money supply growth last month stood at 7.44%, up from 8.16% in December. Private sector credit growth for January was 8.83%, well above December’s 8.74% but slightly lower than the Reuters poll’s estimate of 8.84%.
Later today, the South African Revenue Agency and the National Treasury were due to release trade balance and budget data respectively.
On the Johannesburg Stock Exchange, the Top-40 index recently increased by 1.1%.
The benchmark South African government bond due 2035 strengthened slightly at the start of the session, with the yield falling 1.5 basis points to 7.87%.
“While sentiment towards local assets remains positive for now, any change in commodity prices, global risk appetite or the internal political situation could call into question the sustainability of this recent strengthening,” said Wichard Cilliers, currency strategist at TreasuryONE.
