Rand gains as trade deal prospects lift sentiment

The rand was firmer on Thursday morning after slight optimism about a US-China trade deal, which lifted global market sentiment.

Bloomberg reported that the US and China were closer to reaching a trade deal and agreeing on the tariff amount that would be withdrawn as part of the phase-one deal.

“However, the market has been yo-yoing around the prospects of a deal and it remains unclear how long the positive sentiment will last this time,” RMB economist Mpho Tsebe said.

At 10.05am, the rand had strengthened 0.11% to R14.5739/$ after closing at R14.58 on Wednesday. It was flat at R16.1497/€ and it had weakened 0.21% to R19.1568/£. The euro was little changed $1.1082. 

The R2030 government bond was weaker, with the yield rising one basis point to 9.19%. Bond yields move inversely to their prices.

“Expect yields to be range bound unless something new comes out of the trade talks.” said Sasfin fixed income trader Alvin Chawasema.

Gold was flat at $1,474/85/oz while platinum was down 0.28% to $895.71. Brent crude was up 0.13% to $62.9  a  barrel.

Current-account data for the third quarter is expected to be released by the Reserve Bank on Thursday.

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