The rand was slightly firmer against major global currencies on Thursday afternoon, despite disappointing local data and another sign that global central banks were growing hawkish.Earlier, the deficit in the current account, which gauges SA’s trade with the rest of the world, widened to 4.8% of GDP in the three months to March, from 2.9% in the preceding quarter. The Bloomberg consensus was for a deficit of 3.9%.This was the largest deficit in more than two years and helped explain why the local currency had been so vulnerable to global shifts in sentiment, said Capital Economics analysts.The local unit was fairly flat against the pound, however, which was given a boost after the Bank of England opted to keep interest rates on hold, but with a hawkish tone. The accompanying statement suggested the prospect of an increase in August, Oanda analyst Craig Erlam said.The euro, meanwhile, remained under strain following the appointment of two eurosceptic Italian politicians to key financ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.