Rand steady against dollar ahead of Eskom special paper
Global risk sentiment has been bolstered by hope that the US and China will soon finalise a trade deal
The rand was subdued on Tuesday morning as investors await a special paper on Eskom.
Public enterprises minister Pravin Gordhan is expected to release the paper on Tuesday, which will detail the government's plans to fix the debt-ridden power utility.
“We are sure that Moody’s Investors Service will also keep their eyes wide open for the report, as they cited Eskom as one of the main risks dragging SA down,” TreasuryOne senior currency dealer Andre Botha said.
Global risk sentiment has been bolstered by hope that the US and China will soon finalise a trade deal as well as expectations that the US Federal Reserve may cut its interest rate for the third time in 2019.
At 10.22am, the rand was little changed at R14.54/$ after strengthening as much as R14.52/$ in intraday trade on Tuesday. It had firmed 0.19% to R16.129/€ and 0.16% to R18.6953/£. The euro had weakened 0.13% to $1.1085.
“We see the current levels as good dollar buying opportunities as we do not expect fireworks from the Eskom report nor the medium-term budget policy statement,” Botha said.
Gold was flat at $1,493.73/oz while platinum lost 0.19% to $916.17. Brent crude was down 0.71% to $61.14 a barrel.