Rand retreats slightly from near six-week best

The rand retreated slightly from a near six-week best in early trade on Wednesday as investor caution prevailed due to US-Europe trade disagreements and the International Monetary Fund’s downgrade of its global economic outlook.

At 0841 GMT, the rand traded at 14.03 per dollar, 0.41% firmer than its New York close on Tuesday.

The currency, however, was slightly off the 14.01 mark, its firmest level since February 28, that it touched on Tuesday supported by a weaker dollar.

“The rand is once again trading positively, but it has again failed to test the 14.00 level after having traded to 14.01; demand for dollars saw it trade weaker into the local close,” Nedbank analysts said in a note.

“Today, markets are contemplating the possible effects of an escalation in tensions between the US and the EU regarding imports between the two, and the IMF cutting its global growth outlook.”

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Business confidence data due at 0930 GMT on Wednesday and mining and manufacturing production figures on Thursday are the main data points to watch locally.

In fixed income, the yield on the benchmark government bond due in 2026 was down 1.5 basis points to 8.48% in early trade.