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JOHANNESBURG. — South Africa’s rand firmed early yesterday, tracking fellow emerging market currencies as expectations the US central bank would lower lending rates returned following a batch of gloomy data in the world’s number one economy.
At 0650 GMT the rand was 0,36 percent firmer at 14,0100 per dollar, its strongest level since April 18.
The US trade deficit jumped in May while the protracted trade war between Washington and Beijing drove activity in the services sector to a two-year low in June, data showed on Wednesday, adding to signs of a slowdown in the world’s largest economy.
The green-back slipped as investors sought higher yielding assets.
Asian currencies rose overnight and other emerging units are expected to do the same as the session wears on, with a holiday in the United States, however, limiting volumes.
“Market trading activity has been exceptionally subdued over the most recent sessions, with the markets trading with little conviction and maximum caution, with US NFP data scheduled for release on Friday,” analysts at Nedbank said. — Reuters.
Online Reporter