Rand rides wave of relief after US-China trade ceasefire
Focus this week will be on whether SA exited its technical recession, while risk assets are in favour after the US and China agreed to ease conflict
The rand was firmer on Monday morning, cheered by global interest in risk assets, after the US and China agreed to a 90-day truce in their trade war.
The threat of the trade conflict on rates of global economic growth has weighed on markets throughout 2018; global equity markets and emerging-market currencies all staged a mild risk rally on Monday morning as investors digested the news of the trade truce.
At 9.30am the rand was 0.52% firmer to the dollar at R13.6687, 0.31% against the euro at R15.5489 and 0.3% against the pound at R17.4866. The euro was up 0.2% at $1.1375.
At the same time, the benchmark R186 government 10-year note was at 8.895% from 8.925%.
The rand enjoyed a good month in November, bolstered by improved emerging-market sentiment and easing concerns about US monetary-policy tightening, among other factors.
Focus this week will be on whether SA escaped recession in the third quarter. The Trading Economics consensus is that Stats SA will report on Tuesday that the South African economy grew 0.6% quarter on quarter.