JOHANNESBURG – The South African rand tumbled against a stronger dollar on Friday, as traders weighed the release of monthly economic data from the central bank, revenue service agency and National Treasury.
At 1408 GMT, the rand traded at 15.9850 against the dollar , about 1.5% weaker than Thursday’s close.
The dollar was up 0.5% against a basket of currencies, while gold slumped over 4% on U.S. President Donald Trump’s choice for a new chair of the Federal Reserve.
Trump picked former Fed Governor Kevin Warsh to head the U.S. central bank when Jerome Powell’s term ends in May.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy in addition to local factors.
Data from the South African Reserve Bank showed that M3 money supply growth last month was 8.16%, down from 8.26% in November. Private sector credit growth for December was 8.74%, well above November’s 7.79% and the 7.60% estimated in a Reuters poll.
The National Treasury then published budget balance data that showed South Africa recorded a budget surplus of 38.44 billion rand ($2.40 billion) in December.
South Africa’s revenue service agency published data that showed a trade surplus of 23.18 billion rand in December. Analysts polled by Reuters had expected a surplus of 24.10 billion rand.
On the Johannesburg Stock Exchange, the Top-40 index was last down 4.1%.
South Africa’s benchmark 2035 government bond was weaker, with the yield up 9.5 basis points to 8.06%.
