Rand holds onto overnight gains, in range

(Reuters) - South Africa's rand held onto overnight gains on Tuesday, taking a breather after sharp losses racked up over the past week and shrugging off a wider trade deficit.

The domestic currency was trading at 7.0990 to the dollar at 1530 GMT, virtually unchanged from its close in New York on Monday, when it rebounded from a one-month low of 7.1999.


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S.Africa credit points to rate hike, trade gap up

(Reuters) - Demand for credit by South Africa's private sector grew at a faster pace in June, hardening the case for higher interest rates to curb spending, while a wider trade deficit pointed to continued pressure on the current account.

The Reserve Bank has raised its repo rate by 250 basis points to 9.5 percent since mid-2006 to tame inflation and robust consumer demand, but spending, driven by credit, remains high.


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Weak Dollar Alone Won't Fix Trade Gap, New York Federal Reserve Study Says

(Bloomberg) -- A weaker dollar is unlikely to close
the U.S. trade deficit because foreign exporters have a long-term
interest in maintaining market share in America, the New York
Federal Reserve Bank said in a research note released today.

``Evidence suggests that a weaker dollar will boost foreign
demand for U.S. exports, but this adjustment by itself is
unlikely to close the deficit,'' wrote New York Fed economist
Linda Goldberg and Eleanor Wiske Dillon, a Ph.D. candidate at the
University of Michigan who previously worked at the Fed.


Read more at Bloomberg Currencies News

S.Africa May trade deficit narrows to 2.7 bln rand

(Reuters) - South Africa recorded a trade deficit of 2.67 billion rand in May, compared to April's 5.67 billion rand shortfall, the South African Revenue Service said on Friday.

Analysts polled by Reuters last week had forecast a deficit of 4.8 billion rand, but the data is notoriously volatile and difficult to predict.


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Don't press us on yuan, China tells U.S. Senate

(Reuters) - The bill reflects growing frustration in Congress over the billowing U.S. trade deficit with China, which hit a record $233 billion in 2006.




Many lawmakers believe China's currency practices contribute to the deficit by giving Chinese companies an unfair edge in global markets.


Read more at Reuters.com Business News