JOHANNESBURG — South Africa’s rand firmed against the dollar in early trade on Friday on improved risk appetite as trade tensions eased, while stocks were flat.
By 7:21am the rand was 0,47% firmer at 14,8150, after an overnight close of 14,8850.
The announcement that top negotiators from the United States and China will meet in early October in Washington raised hopes of a possible resolution to the two countries’ trade war that has shaken markets and disrupted the global economy.
“The rand can be expected to remain below 15,00 for the time being. However, any escalation of tension would see the rand rapidly lose ground again,” Bianca Botes, Treasury Partner at Peregrine Treasury Solutions, said in a note.
“The tone of the Fed this evening will also determine the landscape of markets heading into next week.”
In equities, the broader All-Share index inched up 0,03% to 55,491 points at 0732 GMT, while In fixed income, the yield on the benchmark government bond due in 2026 shed 1 basis points to 8.12%.