Johannesburg — The South African rand firmed in early trade on Monday after the release of higher-than-expected money supply and private sector credit figures and ahead of trade and budget balance data due later in the day.
At 0642 GMT the rand traded at 17.6950 against the dollar, up about 0.6% from Friday’s close.
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Central bank data earlier showed South Africa’s money supply growth last month was at 6.86%, up from 6.12% in April. Credit growth for May came in at 4.98%, from 4.60% the previous month.
Nedbank economists had forecast both indicators to show declines year on year.
Money supply figures often give insights into consumer demand strength, which could influence trade balance data due to be released later in the day.
South Africa’s trade surplus is expected to widen after exports increased faster than imports last month, Nedbank economists said in their research note.
“Imports continue to benefit from a more favourable domestic environment, with lower inflation, declining interest rates and a resilient rand boosting demand,” the note said.
Investors are also awaiting budget balance numbers for the same month.
South Africa’s benchmark 2035 government bond was stronger in early deals, with the yield falling by 3 basis points to 9.93%.
*Sfundo Parakozov, editing: David Goodman – Reuters
