Rand falls as dollar finds feet; credit extension slows

The rand was weaker in early trade on Wednesday as the dollar clawed back some losses on global markets, while local credit extension slowed more than expected.

At 0715 GMT, the rand traded at R18.55 against the dollar.

Central bank data showed private sector credit grew 5.87% year on year in July, down from 6.25% in June.

The dollar gained as investors were looking to labour market data for clues on the US Federal Reserve’s interest rate path.

The rand has been highly volatile since last week’s Jackson Hole Symposium of global central bankers, where Fed Chair Jerome Powell said the US central bank may need to raise interest rates further.

“Markets have been worried since Jackson Hole,” Rand Merchant Bank said in a morning briefing.

Around 1200 GMT on Wednesday, South Africa’s National Treasury will release budget July data, shining a light on the health of the country’s public finances.

On the Johannesburg Stock Exchange, the blue-chip Top 40 index last traded up around 0.3% from its Tuesday close. South Africa’s benchmark 2030 government bond was down marginally, the yield up 1.5 basis points at 10.180%.

See also  Top Shot Drops NFTs of WNBA Star Sylvia Fowles' Best Moments

Source link

(This article is generated through the syndicated feed sources, Financetin doesn’t own any part of this article)

We will be happy to hear your thoughts

Leave a reply

%d bloggers like this: