South African rand weakens after commerce knowledge; shares rise

South African Rand cash are seen on this illustration image taken October 28, 2020. REUTERS/Mike Hutchings/Illustration

July 29 (Reuters) – South Africa’s rand weakened towards the greenback on Friday after knowledge confirmed the nation recorded a smaller-than-expected commerce surplus for the month of June.

At 1545 GMT, the rand traded at 16.6125 towards the greenback, 0.76% weaker than its earlier shut.

Information from the South African Income Service confirmed that the commerce surplus (ZATBAL=ECI) narrowed to 24.23 billion rand ($1.46 billion) in June from a surplus of 30.85 billion rand in Could. learn extra

Market expectations had been for a commerce surplus of 25.5 billion rand.

Investec analyst Annabel Bishop stated in a analysis be aware that the nation’s phrases of commerce, which dropped over the primary half of the 12 months, added to rand weak point.

The June finances surplus (ZABUDM=ECI) rose to 73.84 billion rand from 63.15 billion rand a 12 months earlier, Nationwide Treasury knowledge confirmed.

On the inventory market, the Prime-40 (.JTOPI) index and the broader all-share (.JALSH) rose virtually 0.5%, pushed largely by mining sector (.JRESI) shares.

The federal government’s benchmark 2030 bond rose, with the yield down 6.5 foundation factors to 10.360%.

($1 = 16.6408 rand)

Reporting by Bhargav Acharya in Bengaluru and Anait Miridzhanian in Gdansk; Modifying by Kim Coghill and Ken Ferris

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