Rand pares worst quarterly losing streak in 12 years on exports

“There were some inflows from local companies translating their foreign exchange earnings,” Edwin Smit, a derivatives trader at EDI (Pty) Ltd., said by phone from the capital Pretoria.

 

The rand gained as much as 0.8% to R10.0288 per dollar and was trading 0.4% stronger at R10.0676 as of 11:30 am in Johannesburg. The currency has lost 8.3% over the past three months, heading for its fifth quarterly decline in the worst stretch of declines since the final three month of 2001.

 

Yields on 10.5% government bonds due December 2026 fell for a second day, declining three basis points, or 0.03 percentage point, to 8.20%.

 

South Africa, the world’s largest miner of platinum, used as catalytic converters in vehicles, and the fifth-largest producer of gold, relies on raw materials for more than half of its foreign exchange earnings. The continents’s largest economy ships about a third of its manufactured goods to countries that share the euro.

 

The spot price of gold declined for a third day, slumping as much as 3.6% as US economic data beat estimates, strengthening the case for reduced stimulus from the Federal Reserve. Durable goods orders in the world’s largest economy rose more than forecast in May, while consumer confidence for June exceeded projections, data showed yesterday.

Rate Increase
South African forward-rate agreements are pricing in a more than 80% probability that the nation’s central bank will increase its benchmark interest rate before November, Rand Merchant Bank said in an e-mailed note to clients today. These contracts are used by investors to speculate on future rate movements.

The US, the world’s biggest economy, probably expanded by 2.4% in the three months through March, unchanged from the last quarter of 2012, according to the median estimate of 82 economists surveyed by Bloomberg.

– Bloomberg

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertisting

Nehawu launches urgent court bid over protective gear for health...

The health workers’ union says the government has rebuffed its attempts to meet about mitigating risks to workers

Stay at home, Cyril said. But what about the homeless?

In Tshwane, forcing homeless people off the street resulted in chaos and the abuse of a vulnerable population. In Durban, a smooth, well-planned operation fared far better

Press Releases

New energy mix on the cards

REI4P already has and will continue to yield thousands of employment opportunities

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world

SAB Zenzele special AGM rescheduled to March 25 2020

New voting arrangements are being made to safeguard the health of shareholders