Rand recovers as EM demand lifted by Mexico-US deal

The rand firmed early on Tuesday, helped by global risk appetite and easing political turbulence locally following last week’s row over the role of the central bank.

At 0600 GMT the rand was 0.27% firmer at 14.78 per dollar but a touch off the 14.70 seen on Monday, its strongest level in three days.

The rand sank last week after a public spat among senior ruling African National Congress officials over the Reserve Bank’s mandate added to negative sentiment from data showing a contraction in the economy.

A trade deal between the United States and Mexico has been spurring demand for emerging market currencies early this week but lingering worries over tariff spats between Donald Trump’s administration and major partners capped any major advances.

Bonds also firmed, with the yield on the 10.5% sovereign December 2026 issue down 1.5 basis points to 8.4%.