Rand weaker as investors await next move in US-China spat
The rand was weaker on Tuesday morning as investors keep a watchful eye on developments in the US-China trade war.
US President Donald Trump expressed optimism about the trade negotiations between the two countries after Chinese Vice-Premier Liu He said on Monday that China hopes for “calm” negotiations and no further escalation of the dispute, Reuters reported.
“Market nerves have been left raw, with the delicate sentiment prompting knee-jerk reactions to every nuance pertaining to the highly unpredictable US-China trade impasse,” FXTM market analyst Han Tan said in a note.
“Until there are clear signs of progress in US-China trade negotiations, risk-aversion will continue to dominate market sentiment, with safe-haven assets maintaining their appeal among investors,”
At 9.35am, the rand had weakened 0.34% to R15.3355/$, 0.42% to R17.0425/€ and 0.51% to R18.7753/£. The euro had firmed 0.12% to $1.1113.
Gold was up 0.46% to $1,534.25/oz and platinum 0.41% to $858.49. Brent crude was flat at $58.86 a barrel.
Source: businesslive.co.za