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Johannesburg. – THE rand traded in a tight range at midday yesterday ahead of local trade balance figures expected to show SA’s imports continued to outstrip its exports last month.
Earlier the local unit lost about 4c against the dollar as a result of traders squaring positions ahead of the quarter and year end. Demand for the greenback generally increases during the period as most transactions are settled in dollars.
A Johannesburg analyst described the session as lacklustre, with action only expected at 2pm, with the release of SA’s trade balance figures.
Consensus forecast the trade account, which measures the country’s import and export activity with the rest of the world, to have recorded a shortfall of R11,5 billion in May from a deficit of R13 billion the previous month.
A materially worse print than is expected would make SA more dependant on international financial inflows for financing, putting the rand at more risk to volatility.
At 11.45am the rand was at R10,6116 to the dollar from R10,5906 at Friday’s close. Against the euro‚ it was at R14,4870 from its previous close of R14,4615 and at R18,0476 against the pound from R18,0370 at Friday’s close.
The euro was at $1,3651, relatively unchanged from it overnight close $1,3645. – Bdlive.
Online Reporter