Rand firmer despite Eskom concerns dragging domestic unit
DURBAN – The rand started the week flattish ahead of the Medium-term Budget Policy Statement (MTBPS) at the end of the month, while Eskom concerns provided a drag on the rand opposing some of the positive sentiment generated by recent progress made in the US-China trade negotiations.
Investec group economist Annabel Bishop said that as some positive developments on the expected US-Sino trade deal were seen as mildly supportive of global economic growth, the rand was fairly flattish on Monday.
“The positives in the Integrated Resource Plan (IRP) announced at the end of last week also helped the domestic currency strengthen meaningfully, as well the fact that as some, if future planned, progress is being seen to be made in the face of South Africa’s energy crisis,” said Bishop.
The currency ranged between R14.74 – R14.81 against the dollar on Monday.
At 5pm the domestic currency was bid 4c stronger than the same time bid on Friday at R14.80 against the dollar. Against the pound it was 10c weaker at R19.21 and bid at R16.48 to the euro.
Source: iol.co.za
