JOHANNESBURG (Reuters) -The South African rand strengthened on Thursday, helped by better-than-expected current account data.
The country’s current account deficit stood at 0.5% of gross domestic product (GDP) in the three months to March 31, unchanged from the previous quarter, central bank data showed on Thursday.
Analysts polled by Reuters had expected a wider deficit of 0.9% of GDP.
At 1430 GMT, the rand traded at 17.74 against the dollar, 0.4% stronger than Wednesday’s close.
Nedbank economists said in a research note that the current account balance could worsen in the remainder of the year, as imports are expected to outpace exports.
“Subdued inflation, higher real incomes, and … a resilient rand will continue to bolster import demand.
Exports, however, face notable downside pressures due to a weaker, uncertain, and generally volatile global economy,” they wrote.
The Johannesburg Stock Exchange’s Top-40 index was last up about 0.8%.
The benchmark 2035 government bond was weaker, as the yield rose 3 basis points to 10.03%.
(Reporting by Sfundo Parakozov and Alessandro Parodi; Editing by Alexander Winning and Alex Richardson)
