Rand slightly rebounds as global sentiment picks up
The rand was firmer on Friday rebounding after a heavy global sell-off week prompted by fears of a global recession and the concerns about the US-China trade war.
US President Donald Trump said on Thursday that Chinese and US officials were holding “productive” talks over the phone and that the two parties would still meet in September. China earlier threatened to retaliate against the 10% tariff on its imports.
Chinese equities were lifted after the country’s state planner hinted at the possibility of a stimulus plan for its economy amid growing expectations that major central banks will begin a monetary policy easing cycle.
Treasury partner at Peregrine Treasury Solutions Bianca Botes said the rand may not recover soon given the uncertainties in the global environment and the continuous sell-off of emerging market assets.
At 9.50am, the rand had firmed 0.51% to R15.2002/$, 0.72% to R16.8544/€ and 0.25% to R18.4242/£. The euro had weakened 0.2% to $1.1089.
Gold had fallen 0.45% to $1,516.38/oz and platinum 0.33% to $837.52. Brent crude had gained 0.99% to $58.9 a barrel.
Source: businesslive.co.za