Rand firms a little towards R14/$ as global mood improves
The local currency is a little stronger on Tuesday morning due to risk-on global sentiment, but has only slightly pared Monday’s losses
The rand was marginally firmer on Tuesday morning, but remains above the psychologically important R14/$ level.
The local currency had weakened 0.55% against the greenback on Monday, as major currencies rebounded after a few sessions of range-bound trade.
Investor focus is currently on economic data releases, with the hope that these could signal the worst is over for the global economy, said Peregrine Treasury Solutions’ corporate treasury manager, Bianca Botes.
The rand seems to be heading to more sustainable levels, with a break above R14.06/$ indicating R14.20/$ as the new target, said Botes. The rand could trade in a range of R13.95/$-R14.12/$ on Tuesday.
At 9.45am the rand was 0.24% firmer at R14.0118/$, 0.18% up at R15.8478/€ and 0.35% stronger at R18.3323/£. The euro was flat at $1.131.
The benchmark R186 bond was last seen at 8.46% from 8.455%.
Global sentiment continues to be boosted by signs of progress in US-China trade talks, analysts said, with negotiations on trade between the US and Japan getting under way on Tuesday.
US corporate earnings and various economic releases are expected to be the dominant theme markets this week. Markets were looking forward to UK employment data later in the day, while a number of releases, including local retail sales numbers for February and consumer inflation data for March are due on Wednesday.