Rand set for biggest weekly gain in three
The local currency has been the best performer among its emerging-market peers over the past five days
The rand looked set for its best weekly performance in three weeks on Friday morning as emerging-market currencies have been bolstered by the hope that the US and China will soon sign a partial trade deal.
Global market sentiment was boosted by reports that the US will roll back on some of the tariffs on Chinese goods as part of the phase one trade deal.
The local currency, which has been the best-performing among emerging-markets over the past five days, also benefited after Moody’s Investors Service did not downgrade SA last week.
On Friday morning the rand had pared gains after strengthening 0.48% on Thursday. At 10.05am, the currency had weakened 0.14% to R14.7607/$, 0.17% to R16.3171/€ and 0.14% to R18.9212/£. The euro was flat at $1.1054.
Gold was up 0.29% to $1,472.68/oz while platinum was down 0.18% to $906.84 Brent crude lost 0.87% to $61.74 a barrel.
Eskom implemented stage 2 load-shedding on Thursday night. The power utility said the outage was due to three generating units being lost earlier in the day.
“With urgent power cuts overnight and the market still waiting for an announcement about the Eskom CEO, bonds are expected to trade on the back foot this morning. Globally, yields are also tracking higher, and will add to the case for weaker [SA government bonds] today,” said Rand Merchant Bank analyst Deon Kohlmeyer.
The R2030 government bond was weaker, with the yield rising eight basis points to 9.165%. Bond yields move inversely to bond prices.