Rand firms a little as investors enjoy risk assets
The rand was marginally firmer against major global currencies on Wednesday afternoon, with risk assets continuing to be in favour after the US and China reached a partial trade deal at the weekend.
“With low trade activity over the festive period, the recent good news on the Sino-US trade deal continues to assist the rand to maintain its current firm levels against the dollar,” Peregrine Treasury Solutions corporate treasury manager Bianca Botes said in a note.
The pound remains under some pressure, having weakened as investors fear the return of a “cliff-edge” Brexit after newly re-elected prime minister Boris Johnson vowed to block any extension of the EU trade talks beyond 2020.
This means the market is concerned the UK will still leave the EU without full withdrawal agreements on issues such as trade and security.
At 1.39pm, the rand had strengthened against major currencies and was up 0.18% to R14.3569/$, 0.39% to R15.9774/€ and 0.37% to R18.812/£.
The euro weakened 0.2% against the dollar to $1.1128.
Source: businesslive.co.za
