South African Rand Slips as Current-Account Gap Widens Sharply

South Africa’s currency extended losses against the dollar after the current account-deficit widened more than expected in the second quarter, as the rand value of exports decreased amid lower volumes and the terms of trade worsened.

The gap on the current account — the broadest measure of trade in goods and services — expanded to an annualized 1.1% of gross domestic product, or 82.8 billion rand ($4.7 billion), in the three months through June, from a revised 0.6% in the prior quarter, the South African Reserve Bank said in a statement Thursday. That was below the median estimate of eight economists in a Bloomberg survey, who projected a 0.7% deficit.