Rand mixed as dollar cheers Canadian trade deal
The US and Canada bury the hatchet on trade which supports the greenback, with the local currency tracking a weaker euro
The rand was mixed against major global currencies on Monday morning, weakening slightly against the dollar, but firmer against the euro after the US and Canada reached a trade agreement. The deal between the US and Canada comes after months of rancorous negotiations that saw the White House threaten to exclude Canada from a revised North American Free Trade Agreement. This outcome has lifted sentiment, analysts said. Local factors are in the backseat on Monday, but the rand continues to be somewhat resilient amid a pick-up in sentiment towards emerging markets, TreasuryOne currency dealer Andre Botha said.
Focus will now shift to the medium-term budget policy statement, which has the potential for two-way risk to the rand, he said. "We expect a slight bias for the rand to move lower with the R14.10/$ proving sticky, and only a significant break of this level will open up the door for significant gains.” The rand pared its gains against the dollar slightly on Monday morning, a...
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