Rand weakens as trade-war worry dents sentiment
US President Donald Trump says he will probably not meet Chinese President Xi Jinping before the March 1 deadline for new trade tariffs
The rand was weaker against major global currencies on Friday morning, in risk-off trade, as US-China trade war concerns continued to inject an air of gloom into the market. US President Donald Trump said on Thursday he was unlikely to meet with Chinese President Xi Jinping before March 1, when a trade truce between the two countries expires. This put pressure on risk assets, with the rand weakening to a one-week low against the dollar overnight, extending its losses on Friday morning. This was despite President Cyril Ramaphosa announcing in the state of the nation address (Sona) on Thursday that embattled power utility Eskom may be split into three separate entities — providing distribution, generation and transmission, respectively. Eskom’s financial issues are seen as a key risk factor for SA’s sovereign credit status, but Ramaphosa gave assurances that the government would sell nonstrategic assets before providing further bail-outs. Although Ramaphosa addressed Eskom’s issues an...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.