The Rand was trading at R17.09 against the US dollar on Friday afternoon, indicating more good news for fuel prices.
In a week with no major data releases, the Rand definitely stole the show from lacklustre official figures. The Rand exchange rate has been on a bender due to favourable external developments, and the question now is whether there is a hangover on the way and, if so, how severe it will be.
“It is therefore impossible to say where the exchange rate will stabilise and importantly, how long it will stay at that level. Regardless, the implications for inflation and fuel prices are welcome and could contribute to the jumpstart the economy needs.”Bianca Botes, director at Citadel Global, says the Rand hit its strongest level since January 2023, riding the wave of a weaker dollar and the surprise stimulus package from China, which bolstered emerging markets.
Mosoma points out that formal non-agriculture employment increased by 42 000 jobs, also fully driven by employment from extra-budgetary institutions in the public sector for the election. “Without this boost, employment would have been down by 48 000 jobs compared to the previous quarter amid a broad-based decline across industries, such as business services, construction, manufacturing, mining, transport and trade.
“Compared to the second quarter of 2023, 144 000 jobs were lost, but over half a million jobs have been added since the second quarter of 2019. With easing policy uncertainty and growing confidence in the economy’s trajectory, growth and employment creation should improve. Furthermore, slower inflation should support profitability.”Producer price inflation dropped more than expected to 2.8% in August from 4.2% in July, well below the consensus expectation of 3.5%.
“Overall, the moderation in producer price inflation suggests that consumer price increases are also likely to continue trending lower in the coming months.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rand is below R17.60 against the dollar and reached its best level since July 2023The economist said the Reserve Bank has successfully brought inflation within its target range, and with global pressures, particularly from the US, starting to ease, the path for a rate cut seems clear.
Read more »
The rand reaches new heights and is trading below R17.40 against the dollarThe rand has had a good start to the week and is trading below R17. 40 against the dollar on the heels of the interest rate cut by the South African Reserve Bank.
Read more »
Rand Surges Past R17 as China Stimulus and US Rate Gap Fuel GainsThe South African rand has strengthened significantly this week, breaching R17.20 for the first time since January 2023. This surge is attributed to a new aggressive stimulus package announced by China, coupled with expectations of a widening interest rate differential between South Africa and the United States.
Read more »
Rand Report: Rand strengthens as rate cut cycle approachesThe South African rand opened at R17.82 against the US dollar, near its R17.67 support zone. Despite hopes for strengthening, it slipped to R17.92 by Tuesday.
Read more »
Rand Report: After a 13-month high, the Rand slips due to local dataAs the week started, the rand weakened to R17.97 on Tuesday due to lower-than-expected Q2 GDP growth in South Africa and anticipation of US employment data.
Read more »
Rand Report: Rand fluctuates on economic data, ends week on a positive noteLast week, the South African rand opened at R17.79 to the US dollar, fluctuating between R18.02 and R17.59, driven by economic data affecting both currencies.
Read more »