Graphic: renjith krishnan

Johannesburg – The rand was little changed in early trade on Wednesday after December 2012 private sector credit extension (PSCE) showed the first double digit year on year (y/y) increase since February 2009.

“There was some short covering after the data came out as it seems to indicate that the SA economy in the fourth quarter did better than currently expected by economists. What we need is a sustained break below R8.95 to confirm the strengthening trend‚” a local trader said.

At 8.40am‚ the rand was bid at R9.0346 to the US dollar after touching R9.1258 on Tuesday and then closing at R9.0208.

The local currency was bid at R12.1880 to the euro from its previous close of R12.1664 and at R14.2332 against sterling from R14.1939 before.

The euro was bid at $1.3483 from Tuesday’s close of $1.3486 and Monday’s close of $1.3447.

Credit extension to the private sector (PSCE) grew by 10.09% year on year in December‚ from a 9.59% increase in November‚ South African Reserve Bank (SARB) figures released on Wednesday showed.

The rate of growth in SA’s broad M3 money supply measure slowed to 5.17% year on year in December from a 6.26% year on year growth in November.

PSCE was expected to have increased by 9.76% year on year according to a survey by I-Net Bridge‚ while M3 was expected to have increased by 6.1%.

Total loans and advances‚ which is PSCE excluding investments and bills discounted‚ recorded a 9.96% year on year growth in December from 9.86% year on year growth in November.

Total domestic credit extension amounted to 10.63% year on year in December from a 9.78% year on year increase in November. - I-Net Bridge