US-China trade war keeps rand under pressure
The local currency has benefited from the results of last week’s election, but risk-off trade has capped gains
The rand was weaker against major global currencies on Monday morning, remaining under pressure amid uncertainty over the future of US-China trade relations. Investors heavily sold off riskier assets last week after it emerged that the US and China may be further away from a new trade deal than previously expected. The US raised import tariffs on Chinese goods last week, and the market is now waiting for China’s promised retaliation, while US President Donald Trump has said he is considering even more protectionist measures. The rand was weaker on Monday morning, but has gained since last week’s general election. Analysts maintain that the ANC’s electoral victory — albeit a reduced one — should allow room for President Cyril Ramaphosa to pursue his policy agenda. The performance of the DA and ANC was a clear sign that voters were choosing more centrist policies, said Anchor Group CEO Peter Armitage in a note on Sunday. The fact that the ANC received a majority in Gauteng was also po...
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