Rand softer on current account deficit

10 Sep 2013

The rand was slightly softer on Tuesday (10 September) after the release of a worse than expected second-quarter current account deficit.

Image courtesy of thanunkorn / FreeDigitalPhotos.net

The deficit on SA's current account - the broadest measure of trade in goods and services - widened more than expected in the second quarter, to 6.5% of gross domestic product (GDP) from a deficit of 5.8% of GDP in the first quarter, the Reserve Bank reported on Tuesday.

The rand was bid at R10.0070 to the dollar from Monday's close of R9.9464. Against the euro‚ the rand was bid at R13.2544 from its previous close of R13.1848. The rand was bid at R15.7167 against sterling from R15.6111 at its previous close.

The euro was bid at US$1.3242 compared with US$1.3251 at Monday's close and $1.3179 at Friday's close.

"We would have thought the rand would have weakened more on the deficit number that came in worse than expected this morning. It is not a good figure," RMB currency trader Jim Bryson said.

"The Aussie dollar is a lot stronger on positive Chinese industrial production data. The emerging-market panic of last week has subsided, and the rand has settled into stable ranges. We are trading between the R9.80/$ to R10.30/$ range," he said.

Source: I-Net Bridge

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