Rand consolidates below R14/$ in risk-on trade
The local currency is benefiting from improved global sentiment, as well as the decreased chance of a credit-ratings downgrade by Moody's Investors Service
News that the US is no longer considering slapping additional import tariffs on Chinese goods this week boosted the rand on Monday afternoon, with the local currency comfortably below the R14/$ handle. US President Donald Trump tweeted overnight that he would let a March 1 deadline for a trade deal with China pass. Trump will instead seek a meeting with Chinese President Xi Jinping. At 2pm the rand was 0.77% stronger at R13.8657/$, 0.56% firmer at R15.7574/€ and 0.67% up at R18.145/£. The euro was 0.21% firmer at $1.1364. The rand continues to find support from last week's budget policy statement, which was not as negative as the market had feared, analysts said. A decision not to directly bail out Eskom, and instead offer the embattled power utility bridging loan, in particular is seen as move that may placate Moody's Investors Services. Moody's is the only ratings agency that holds SA's sovereign credit rating at above junk status, and a downgrade would prompt sharp selling of loc...
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