Rand firms towards R14/$ as US-China trade talks resume
The local currency has benefited from some risk-on sentiment in global markets
The rand was slightly firmer against major global currencies on Monday morning, benefiting from some risk-on sentiment in global markets.
There is optimism that progress could be made in US-China trade talks this week. US markets are closed on Monday for Presidents’ Day, which could subdue trading activity a little.
The US intends to levy additional tariffs on more than $200bn in Chinese exports on March 1, but US President Donald Trump has suggested he may extend the deadline, although he has offered no firm guarantee.
At 9.30am the rand was 0.24% firmer at R14.0454/$, 0.13% stronger at R15.8908/€ and 0.2% stronger at R18.1412/£. The euro was 0.18% weaker at $1.1314.
Local focus is on Wednesday’s budget policy statement, which will contain firm details on how the government intends to pursue its fiscal consolidation, while still meeting its electoral promises.
A cloud still hovered over the rand, and it is likely trade in tight ranges ahead of the budget speech, said TreasuryOne currency dealer Andre Botha.