Rand mixed as dollar retreats on US-Mexico deal
The dollar is currently in focus, having weakened slightly as a new trade deal between the US and Mexico prompts risk-on trade
The rand was mixed against major global currencies on Tuesday afternoon, bolstered somewhat by risk-on sentiment, but still under pressure from continued weakness in the Turkish lira.The greenback has given up ground on improved risk appetite, prompted by news on Monday that the US and Mexico had inked a new trade deal, which injected some optimism into the market.This deal indicates that US President Donald Trump’s administration is willing to compromise in negotiations with other trading partners as well, said BK Asset Management MD Boris Schlossberg. Attention will now turn to the start of trade talks between the US and Canada.After strengthening overnight, the rand was somewhat range-bound on Tuesday, failing to fully track the euro, which has extended gains.Analysts said the rand was still likely to be pressured by sell-offs in the Turkish lira, which was also weaker on Tuesday afternoon. The lira resumed its slide on Monday, under pressure following a week of holidays in that ...
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