Rand firms 1% on risk-on trade and Chinese investment pledge

Meanwhile, global and local markets, particularly miners, were buoyant on Tuesday after the Chinese government signaled it would significantly boost infrastructure spending. The Chinese unveiled a string of measures to boost domestic consumption amid economic pressure from an escalating trade spat with the US, including urging local governments to invest more in infrastructure, reported Dow Jones Newswires.

Local and international data was mixed on the day. Earlier, SA’s coincident business cycle indicator for April — the first month of the second quarter — fell to 101.9 points from 103 in May. While not positive in terms of outlook for the second quarter, this was only a single month’s reading, said Investec economist Annabel Bishop.

Global data was likewise mixed, with a flash eurozone purchasing managers index reading for July showing easing business conditions in France, but an uptick in Germany.

At 2.15pm, the rand was 0.95% firmer to the dollar at R13.3324 from R13.4595, at R15.6075 to the euro from R15.7356, and at R17.5027 to the pound from R17.6332.

The yield on the benchmark R186 10-year note was bid at 8.73% from 8.765%, while the R207 was at 7.45% from 7.48%.