Rand weakens as trade talk moves remain in focus
The rand was still the best performing among the emerging-market currencies tracked by Bloomberg over the past five days
The rand was weaker on Monday morning while investors await more news in the US-China trade talks.
The rand was still the best performing among the emerging-market currencies tracked by Bloomberg over the past five days. Sentiment was lifted earlier by reports that the US and China were having constructive talks, as the two countries are set to sign a partial deal later on Monday.
Locally, investors continue to keep an eye on the SAA strike. About 3,000 workers downed tools last week demanding an 8% wage increase from the financially strapped national carrier.
“With such deep political uncertainty prevailing, the rand has held up well. We can link this to the wave of monetary policy easing that has been taking place offshore for much of 2019, while the Ramaphosa administration has done a good job of maintaining the fiscal reform narrative,” Mercato Financial Services analyst Nico Du Plessis said.
At 10.35am, the rand weakened 0.25% to R14.7504/$, after closing at R14.71 on Friday. It had weakened 0.45% to R19.1009/£ and 0.37% to R16.3201/€. The euro had strengthened 0.12% to $1,1064.
Gold was down 0.53% to $1,460.11/oz and platinum 0.77% to $884.02. Brent crude lost 0.28% to $63.26 a barrel.
R2030 government bond was weaker, with the yield rising five basis points to 9.125%. Bond yields move inversely to bond prices.
CORRECTION: November 18 2019
In the previous version of this article, it was incorrectly stated that Statistics SA was due to publish mining production data on Monday.