The effect of the Israel-Gaza conflict and national census ripples across SA’s economy
The South African currency fell on Monday as the unrest in the Middle East fueled risk aversion in global markets, and traders anticipated the outcome of the national census, which is due this week.
At 1510 GMT, the rand was trading at 19.4100 per dollar, down 0.6% from its Friday close.
“Trade in the rand will likely remain cautious as markets wait to see how the Middle East situation develops,” TreasuryONE currency strategist Andre Cilliers said.
As reported by the American news agency, Reuters, the US dollar rose against a basket of global currencies as confrontations between Israeli troops and the Palestinian militant group Hamas increased, sending investors fleeing to the protection of the greenback.
“While South Africa is geographically far removed from the Israel/Gaza conflict, (it) is not deemed to have shown complete neutrality towards the Russian/Ukraine war and concerns exist that this may be repeated, which would undermine the rand further,” Investec economist Annabel Bishop said in a research note.
The results from South Africa’s 2022 census, the first in more than ten years and the fourth population and housing survey since apartheid, will be made public on Tuesday by the country’s statistics office.
It is anticipated to provide an in-depth examination of the economy that will boost planning and growth in the most developed economy in Africa.
The data will be the market’s main focus as it provides information on the South African economy and its battle with high unemployment.
The blue-chip Top-40 index (.JTOPI) of the Johannesburg Stock Exchange maintained its position, finishing unchanged. The benchmark 2030 government bond for South Africa was less strong; its yield increased by 4 basis points to 10.93%.
Source: Ghana Business
