Rand strengthens but investors remain cautious

The rand was firmer on Wednesday morning while investors remain cautious amid concerns about the US-China trade war. 

“The sword hanging over the global economy and the impasse over the US-China trade talks are major obstacles for risky assets like the rand,” TreasuryONE currency dealer Andre Botha said. 

“We need some positive news and developments on both fronts for the risky assets to stage a meaningful recovery,” Botha said.

Locally, the Treasury released a paper on economic policy by finance minister Tito Mboweni on Tuesday night. The paper highlights plans to boost GDP to 3% while tackling unemployment by creating one-million jobs.

At 9.50am the rand had strengthened 0.16% to R15.2765/$, 0.18% to R16.9455/€ and 0.33% to R18.7490/£. The euro was flat at $1.1093.

Gold was unchanged at $1,541.31/ oz while platinum was up 0.54% to $871.32. Brent crude had lost 0.15% to $59.91 a barrel.