South Africa’s rand firmer ahead of inflation numbers

Madiha Shakeel December 12, 2018

JOHANNESBURG: South Africa’s rand opened firmer on Wednesday, extending gains from the previous session as signs of thawing U.S.-China trade tensions boosted risk appetite, while a jump in industrial output locally also spurred demand for the currency.

* At 0635 GMT, the rand was 0.33 percent firmer at 14.2700 per dollar from an overnight close of 14.3175.

* U.S. President Donald Trump, in an interview with Reuters, said talks were taking place with Beijing and he would not raise tariffs until he was sure about a deal.

* The currency snapped a four-session losing streak on Tuesday, triggered by doubts over Britain’s plan to exit the European Union, and in early trade was near the 14.20 resistance level that has been a recent buy-target.

* Focus in the local session is expected to be on November inflation data due at 0800 GMT as investors gauge the next interest rate move after last month’s increase by the central bank.

* Bonds inched firmer, with the yield on the benchmark 2026 paper down 1.5 basis points at 9.15 percent.

Copyright Reuters, 2018

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