South Africa's rand stable; caution high ahead of British referendum

By Polycarp Kazaresam

South Africa’s rand distanced from seven week highs against the dollar on Wednesday, with traders and analysts expecting caution on the evening of the British EU referendum.

South African economic headlines have taken a backseat in shifting the currency this week. Despite this, inflation data due out at 0800 GMT could boost it slightly if higher than expected, increasing the prospect of higher interest rates this year.

At 0653 GMT the rand traded at 14.7290 to the dollar, which comes close to its previous close at 14.7350.

The rand had decreased by about 10 cents from Tuesday’s high of 14.6225, the rand’s strongest level since May 4 which followed a rise in risk appetite as investors bet on Britain remaining in the EU after tomorrow’s vote.
 

"Optimism in financial markets ahead of the UK referendum has tempered ahead of the vote tomorrow," South Africa’s Standard Bank said.

Government bonds edged higher in early trade, with the yield for debt due in 2026 dropping 2 basis points to 8.97.
 

African Business Review’s June issue is now live.

Stay connected: follow @AfricaBizReview and @WedaeliABR on Twitter.

African Business Review is also on Facebook. 

SOURCE: [Reuters]

Share
Share

Featured Articles

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

As Accenture predicts the metaverse will fuel a US$1 trilion commerce opportunity by 2025, we round up 10 pioneering metaverse projects in the UAE

PwC’s survey shows Middle East CEOs remain upbeat on growth

CEOs in the Middle East are far more optimistic about regional growth than those in North America and Europe, according to PwC’s annual survey

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy

5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwC

Leadership & Strategy

Survey: The Future of Cloud Security in the Middle East

Technology