Rand leads emerging-market currencies as local jitters ease
On Tuesday morning, the rand was the best-performing currency among emerging markets,on its third day of gains
The rand was firmer on Tuesday morning, gradually recovering as local political tension eases, while on the global front, US President Donald Trump threatens to impose more tariffs on China.
Speaking to reporters on Monday, Trump said he was ready to impose further sanctions on Chinese imports if the two countries did not make progress at their next trade talks at the Group of 20 (G20) summit later in June, Reuters reported.
Despite Trump's threats, risk-on trade persisted in the global markets, with Asian stocks opening higher.
“The relief rally in the rand has certainly assisted in easing some local jitters, but with Donald Trump once again threatening a new round of tariffs on China, the local unit might not be heading to much greener pastures for long.” treasury partner at Peregrine Treasury Solutions Bianca Botes said.
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On Tuesday morning, the rand was the best-performing currency among emerging markets, on its third day of gains.
At 09.30am, the rand had strengthened 0.65% to R14.7296/$, 0.5% to R16.6867/€ and 0.64% to R18.6896/£. The euro was up 0.16% to $1.133.
The benchmark R186 government bond was firmer, with its yield falling 3.5 basis points to 8.37%. Bond yields move inversely to bond prices.
Gold had fallen 0.19% to $1,325.43/oz and platinum 0.47% to $803.61. Brent crude had gained 0.51% to $62.66.
Manufacturing figures for April are scheduled for release today, with analysts expecting a decline of 0.4% from 0.8% in March, according to a Bloomberg consensus.