Rand enters second day of gains as risk sentiment improves
The rand was the best performing among emerging-market currencies tracked by Bloomberg
The rand was into its second day of gains on Tuesday morning as global risk sentiment improved while investors await manufacturing and unemployment data later in the day.
The local currency was the best performing among emerging-market currencies tracked by Bloomberg on Tuesday, trading below the psychologically important R15/$ for a second day.
“With little on the data front to distract from the allure of high, real interest rates, the rand’s partial strength should be preserved, though the impetus to move substantially lower than R14.90/$ is lacking given the dollar’s strength,” said RMB analyst Nema Ramkhelawan-Bhana.
At 11.05am, the rand had firmed 0.44% to R14.9054/$, 0.45% to R16.2609/€ and 0.55% to R19.2343/£. The euro was flat at $1.0910.
Gold lost 0.15% to $1,569.01/oz while platinum added 0.55% to $964.2. Brent crude was up 0.94% to $53.86 a barrel.
Statistics SA is expected to release manufacturing data for December on Tuesday. The median forecast among economists polled by Bloomberg is for manufacturing production to have contracted 3.9% in December from a 3.6% contraction in November.
The unemployment rate for the fourth quarter is also due.