South African Rand coins. Picture: REUTERS
South African Rand coins. Picture: REUTERS

The rand continued to rally on Thursday as positive global developments boosted sentiment.

China’s commerce ministry said on Thursday that China and the US have agreed to hold talks in October in an attempt to resolve the prolonged trade war.

The withdrawal of Hong Kong’s controversial extradition bill also lifted markets, calming the fear that has pervaded the city that has been marred by protests for the past few months.

“The true test is whether this is only a good news story that will be temporary or if there is a deep-seated correction on the way,” TreasuryOne senior currency dealer Andre Botha said.

“The next few trading sessions will hold the key in terms of direction for the rand. For now, we believe that sentiment is the main driver and we could see the rand possibly testing the R14.70 level,” Botha said

The improved global sentiment and better-than-expected second-quarter GDP growth helped the rand reach its best level in a month.

At 9.51am the rand had strengthened 0.25% to R14.7634/$, 0.2% to R16.3030/€ and 0.32% to R18.0767/£. The euro was flat at $1.1042. 

Gold was down 0.53% to $1,544.15/oz and platinum 0.54% to $981.83. Brent crude lost 0.21% to $60.36 a barrel.