Rand a little firmer as market eyes Cyril Ramaphosa’s cabinet
The US-China trade war and local developments should dominate this week, and the local currency’s volatility could pick up in coming days
The rand was a little firmer on Monday morning, although lacking in clear direction, with a series of risk events offering the prospect of volatility in the week ahead. There is a little on the calendar on Monday, but the US Federal Reserve will release minutes from its last meeting on Wednesday, while locally, the Reserve Bank will pronounce on monetary policy on Thursday. Global focus remains on the US-China trade war, amid concerns that the conflict will escalate further before easing. The trade conflict had put pressure on the Chinese yuan, spilling over into emerging markets more generally, and breaking the rand out of the comfortable R14.20/$-R14.30/$ range it was in last week, said TreasuryOne senior currency dealer Andre Botha. Further volatility should be expected, and a sustained break above R14.50/$ would point to further weakness. Emerging markets were getting a little boost on Monday, however, by political developments in India. The Indian rupee surged against the dolla...
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