Rand tracks firmer commodity prices
Further signs the White House is keen to strike a trade deal with China bolsters risk assets, benefiting emerging-market currencies
The rand was firmer against major global currencies on Wednesday afternoon, in line with other emerging-market currencies, as markets welcomed US-China trade developments.
Positive sentiment on global markets has been a boon for commodities, with the rand finding support from this due to SA’s position as a major metals exporter.
“Fellow commodity currencies are also performing reasonably well and sentiment towards them, including the rand, will have improved,” said Mercato Financial Services analyst Nico du Plessis.
At 10am the rand was 0.33% firmer at R13.9237/$, 0.08% at R15.9701/£ and 0.13% at R17.7354/€. The euro was 0.26% stronger at $1.147.
Talks between US and Chinese officials this week have resulted in a number of comments from both sides pointing to a compromise, although analysts cautioned that a final deal was likely still some way off.
US officials have warned that no agreement is expected to emerge from the current meetings, but they could lead to higher-level negotiations that could end the trade tensions that have shaken global markets for the past year, reported Dow Jones Newswires.