The Sunday Mail
THE South African Rand rose 0,6 percent to 10,7867 against the United States dollar by midday today as the country’s Central Bank reported that the current account deficit had unexpectedly narrowed in the first three months of the year.
The deficit, which gauges the trade in goods and services, declined to 4,1 percent from 5,1 percent a quarter earlier.
South Africa is Zimbabwe’s biggest trading partner and any movement in the rand has a direct bearing on trade since the greenback has become the dominant currency of exchange. The rand has declined more than 23 percent since the beginning of 2013.
In January the unit dropped the most in five years to 11:1 against the dollar.
But experts claim the Rand’s gain might be short-lived as South Africa is currently confronting unrest in the platinum sector and rolling power black outs from power utility Eskom. – Sunday Mail Business
