Rand at three-week high as China announces new stimulus measures
Global risk appetite has improved slightly, seeing the rand tough its best level against the dollar in three weeks
The rand was substantially stronger on Friday afternoon, touching its best level against the dollar in about three weeks as global risk appetite improved. Risk-on trade entered the markets after Chinese authorities announced another round of stimulus by reducing the amount of cash banks must hold as reserves. The improved global sentiment also came as the US and China prepare for a face-to-face meeting next week to attempt to resolve their trade dispute, which has fed concerns over a deceleration in global economic growth. “It is encouraging that there is real appetite to work towards a solution on both sides, although whether that will be enough to get a comprehensive agreement over the line is another thing,” Oanda senior market analyst Craig Erlam said. “The Chinese economy is already suffering as a result of the trade war and efforts to support small and private firms this morning with a [reserve requirement ratio] cut is evidence of that.” Local government bonds were also posit...
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