Rand rebounds as US-China conciliation fuels risk-on trade

The rand was off a 2018 low against the dollar on Tuesday morning, as emerging-market currencies gained following an upbeat performance from the Dow on Monday.

News on Monday that the US and China had suspended tariffs pending further trade talks boosted Asian and US markets on Monday, but emerging-market currencies remained under pressure amid dollar strength and high US treasury yields.

The rand strengthened overnight, with analysts citing the generally positive sentiment on global markets.

With the renewed stock market gains, there was an increase in risk-taking behaviour, which helped emerging-market currencies strengthen across the board, said TreasuryOne currency dealer Andre Botha.

At 9.40am the rand was at R12.5352 to the dollar from R12.6748, at R14.7977 to the euro from R14.9494 and R16.8644 to the pound from R17.0242.

The euro was at $1.1805, from $1.1791.

The price of Brent crude, however, was approaching $80 a barrel. On Monday the White House released a list of demands it had put to Iran, including an end to all support of foreign military groups and an end to all uranium enrichment. Tehran swiftly dismissed this, reported Dow Jones Newswires.