The rand was little changed against major global currencies on Thursday afternoon‚ with the local market now focused on the ANC’s national elective conference‚ after global central banks left interest rates unchanged on Thursday.
The decisions by the Bank of England and the European Central Bank were expected‚ with the latter saying it would not raise interest rates until at least September 2018.
The rand had pared earlier losses and was flat‚ holding onto overnight gains that came after the US Federal Reserve raised interest rates‚ but struck what was seen by many as a dovish tone in its commentary.
Local data on Thursday was disappointing‚ but analysts said the rand would take its direction from larger risk events‚ including the forthcoming ANC conference.
The rand had been remarkably stable this week‚ and the outcome of the ANC conference would likely generate significant volatility‚ said TreasuryOne currency dealer Gerard van der Westhuizen.
Earlier the Reserve Bank said SA’s current account deficit narrowed less than expected in the third quarter of 2017‚ to 2.3% of GDP from 2.4% the previous quarter.
Statistics SA’s producer price index (PPI) also surprised to the upside‚ rising to 5.1% in November from 5% in October. Economists had expected it to fall.
At 3pm‚ the rand was at R13.4590 to the dollar from R13.4549‚ at R15.9289 to the euro from R15.9142‚ and at R18.0802 to the pound from R18.0468.
The euro was at $1.1834 from $1.1827.
– BusinessLIVE
