The rand came under pressure on Thursday afternoon on news that South Africa recorded a record trade deficit for October, bringing concerns of structural imbalances back to the fore. South Africa recorded a deficit of R12,943-billion for its trade with non-Southern African Customs Union trading partners in October, according to customs and excise figures released on Thursday.
At 2.15pm, the rand was bid at 7,2450 per dollar from 7,1680 five minutes before the data was released and an overnight close of 7,1281.
ETM market analyst George Glynos said that the rand’s reaction to the trade number was not surprising.
“Naturally guys have reacted to the headline number, which was a shocker,” he said. “Once they have digested the number and seen that it is related to oil stockpiling, it [the rand] might reverse.”
A previous record R7,746-billion deficit was recorded in July. — I-Net Bridge