ECONOMIC OUTLOOK
Growth will gain traction, says analyst
Rand bulls say fundamental factors support the rand, with the currency clearly oversold at R14 to the dollar following the downgrades
The rand continues to endure adverse economic data as it consolidates ahead of possible further gains, based on a more optimistic assessment of economic growth later in 2017. The rand showed little reaction to weak manufacturing and retail growth data last week, with better-than-expected mining data on Thursday providing support despite a firmer dollar. Data suggest that SA’s economy has had a weak start to 2017. "Even so, we expect that growth will gain traction later this year and that the economy will weather the recent political storm," said Capital Economics economist John Ashbourne. On Wednesday, the rand gained 2.64% against the dollar, to R13.4598, its best intraday move in 2017. Its previous best was on March 15, when it firmed 2.61% from R13.50 to the dollar to R12.80 to the dollar. Rand bulls say fundamental factors support the rand, with the currency clearly oversold at R14 to the dollar following S&P Global and Fitch’s downgrades earlier in April. On Thursday, Finance M...
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