Greenback Bounces Back From Early Losses Against South African Rand

The US dollar bounced back from early morning session's low of 7.6050 against the South African rand in New York afternoon deals on Wednesday. The greenback-rand pair that closed yesterday's New York session at 7.6788, is now trading near 7.6587. The next upside target level for the US currency is seen at 7.6946.

South Africa's M3 money supply increased at a slower pace in May. The M3 money supply increased 1.40% year-on-year in May, slower than 1.67% growth in the previous month, a latest report from the South African Reserve Bank showed on Wednesday. The money supply growth eased for the first time in 2010. Economists had expected an increase of 1.5%.

The M2 money supply dropped 1.02% in May, compared to a 0.44% rise in the previous month. At the same time, the M1 money supply grew 7.06% versus 8.77% in April.

South Africa's trade deficit narrowed in May, a report by the South African Revenue Service showed today.

The trade deficit stood at ZAR 0.30 billion in May, narrowing from ZAR 1.89 billion deficit in the previous month. Economists had expected a shortfall of ZAR 2.5 billion. A year earlier, the trade balance showed a surplus of ZAR 1.99 billion.

Exports increased 6.8% on a monthly basis to ZAR 47.18 billion in May, compared to the 14.29% fall in the previous month. At the same time, imports rose 3.1% to ZAR 47.48 billion, after falling 9.83% in April.