Cape Town - The rand swung between gains and losses before the release of data that may show South Africa’s current-account deficit narrowed in the third quarter, easing pressure on the exchange rate.
The shortfall shrank to 6 percent of gross domestic product from 6.5 percent in the previous three months, the central bank may report tomorrow, according to the median estimate of nine economists in a Bloomberg survey.
South Africa’s purchasing managers’ index probably climbed to 50.9 in November from 50.7 the month before, a report today may show.
“Most important from a currency-market perspective is the current-account result,” Bruce Donald, a strategist at Standard Bank Group Ltd. in Johannesburg, said in e-mailed comments.
“Currency-market action since late September last year tells us that participants have been questioning the sustainability of the shortfall.”
The rand was little changed at 10.1727 per dollar by 10:34 a.m. in Johannesburg, after gaining as much as 0.2 percent and retreating 0.5 percent.
Yields on benchmark bonds due December 2026 rose one basis point, or 0.01 percentage point, to 8.33 percent.
Foreign investors sold a net 156 million ($15 million) rand of South African bonds on November 29, bringing outflows last month to 14.8 billion rand, the most in a month since September 2011. - Bloomberg News