Commodity exporter currencies like South African rand hold gains on China respite, oil

The currencies of resource-exporting nations held gains after an increase in China’s trade surplus helped to boost commodity prices.

The Norwegian krone and South African rand climbed almost 1 per cent against the US dollar on Wednesday after China’s trade surplus widened and exports recovered last month, while crude imports rose to a record. The report assuaged concerns that growth is slowing in the world’s second-biggest economy.

"It’s definitely a relief rally after the Chinese trade data," said Karl Schamotta, director of foreign-exchange research and strategy in Toronto at Cambridge Global Payments, which hedges currencies for companies. "Some of the fear around China has dissipated," stabilising the outlook for commodity demand, he said.

Currencies of raw material sellers, including Mexico and New Zealand and Canada, have fallen since the start of the year as China’s currency depreciated, fuelling speculation that the nation will use fewer natural resources. Crude oil prices erased earlier gains to trade near a 12-year low.

The rand was little changed at 16.5817 per dollar in Tokyo on Thursday after advancing 0.6 per cent in New York. It dropped to a record this week. Norway’s krone was at 8.8202 against the greenback from 8.8191 on Wednesday, when it gained 0.7 per cent as the Bloomberg Commodity Index increased 0.3 per cent.