Rand on track for best week in three months
Positive local economic data and a thaw in the US-China trade war this week put the rand on track for its best weekly performance in almost three months on Friday morning.
SA’s better-than-expected second-quarter economic performance and news the US and China would resume trade talks has lifted the currency 2.1% against the dollar so far this week, although risks loom in the form of US economic data later on Friday.
A move by the UK parliament to block a no-deal Brexit, as well as the formation of a new governing coalition in Italy has also lifted sentiment, while the risk of political protests in Hong Kong has eased following the withdrawal of a controversial extradition bill.
At 8.11am the rand was flat at R14.8744/$, R16.4241/€ and R18.3511/£. The euro was little changed at $1.1042.
The rand has largely brushed off negative domestic news this week, with attacks on foreign nationals and their businesses in SA have led to a retaliation against SA businesses in other African countries.
The rand can be expected to remain below R15/$ for the time being, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes in a note. “However, any escalation of tension would see the rand rapidly lose ground again,” she said.
Source: businesslive.co.za