Rand softer against the dollar

Trade report 29/07/2013

The rand was softer against the dollar in early Monday trade, retreating a few cents after Reserve Bank data showed growth in credit extension to the private sector slowed again in June. The data backs the case for the Reserve Bank to consider another interest rate cut - rates have been steady since the last reduction in 2012 - to boost consumer demand and spur economic growth. The USD-ZAR is expected to trade at 9.70-9.8500 today.

Growth in credit demand from South Africa's private sector slowed to 8.91 percent year-on-year in June from 9.05 percent in May, central bank data showed on Monday. Expansion in the broadly defined M3 measure of money supply also braked, to 9.18 percent from 9.75 percent. Economists surveyed by Reuters had expected credit growth to slow even more, to 8.75 percent while money supply growth was seen virtually steady at 9.7 percent.

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