Rand stabilises at weaker levels as US-China talks resume
Risk-on trade creeps back into the market on news the US and China will resume trade talks, although the local currency remains under pressure from domestic factors
The rand was stable against major global currencies on Thursday afternoon, supported in part by the Turkish lira’s return to pre-crisis levels. Risk sentiment received a lift overnight on two fronts: reports that China had accepted a US invitation to trade talks in late August, and Qatar’s pledge to invest upwards of $15bn in Turkey, Oanda vice-president Dean Popplewell said. This brought the Turkish lira back to roughly where it was last Friday, before the US announced stiff new sanctions on steel and aluminium imports — which sent the lira into a tailspin. The rand, however, remains about 9% off last Thursday’s close, or about 90c weaker against the dollar.
On Wednesday, downbeat retail sales, a negative assessment by ratings agency Moody’s on the pace of SA’s fiscal consolidation, and further commentary from the ANC about expropriation of land without compensation put the local unit on the back foot. Outlining the ANC’s plan for expropriation of land without compensation on...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.