Rand cheers weaker dollar, as outlook improves slightly

The rand was slightly firmer against major global currencies on Friday morning, extending gains made on Thursday, as improving investor sentiment continued to filter into market activity.

Few risk events lie on the horizon heading into the weekend, with analysts saying the market would be watching for further trade developments and corporate earnings reports.

The local currency was 1.93% firmer against the dollar on Thursday, when it was announced the US and China would resume attempts to resolve trade differences.

Local data was upbeat, with mining and manufacturing data beating economists’ expectations, and giving some justification for the hope that SA’s economic recovery accelerated in the second quarter.

In other positive news, President Cyril Ramaphosa secured a $10bn investment from Saudi Arabia during his state visit to the oil-rich nation. The energy investment follows a £50m commitment from the UK in the same sector earlier this year.