Peregrine Treasury Solutions

14 Mar 18

Rand Strengthens Amid Favourable Sentiment as US Inflation Drops

The rand opened relatively flat yesterday moving within a tight range of R11.814 to R11.86 in early trade, before breaking below the R11.80 mark after reports that US inflation had slowed month on month. Corporate treasury manager at Peregrine Treasury Solutions, Bianca Botes, said the US consumer price Index (CPI) figures would have caused waves if they were at the high end as this would have created the expectation of interest rate hikes.

07 Mar 18

GDP Springs Q4 Surprise

ECONOMIC growth appears to have bounced back, with the gross domestic product (GDP) rebounding strongly in the fourth quarter of last year on the back of strong recoveries in agriculture, which increased output by 37.5%, lifting the hopes of the more than five million unemployed that the job market could improve.

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06 Mar 18

Rand Strengthens After Better-than-Expected GDP Data

The rand was trading at R11.81/dollar on Tuesday afternoon (6 March), in an immediate response to the announcement that South Africa’s GDP expanded by 3.1% in the fourth quarter of 2017, and by 1.3% for the year as a whole. Stats SA reported on Tuesday that country’s GDP growth exceeded National Treasury’s expectation of 1.0% growth announced during the National Budget Speech in February last year, and shot far past market expectations which ranged from 0.2% to 0.8%.

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06 Mar 18

Bonds Track Firmer Rand as SA’s Economic Outlook Improves

Local government bonds strengthened on Tuesday afternoon, in line with local currency gains, after data showed a significant pickup in economic growth in 2017. Statistics SA said earlier that the economy grew 1.3% in 2017 on an annualised basis, well ahead of market expectations, and the treasury’s forecast of 1%.

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02 Mar 18

Rand Turns Just Before Hitting R12 to The Dollar

The South African rand recovered some of the losses made on Thursday – off the back of a weaker dollar – but is still trading near 2-week lows, with a potential move beyond R12 to the dollar still a possibility. Following a third session of weakening on Thursday, the rand recovered slightly in morning as US president Donald Trump announced his intent to impose tariffs on steel and aluminium imports in the States.

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