JOHANNESBURG: South Africa’s rand firmed against a weaker dollar early on Wednesday, as investors awaited President Cyril Ramaphosa’s national address on Thursday and closely watched developments between the US and China.
At 0752 GMT, the rand traded at 18.6125 against the US dollar, about 0.3% stronger than its previous close.
The dollar last traded about 0.3% weaker against a basket of currencies after China retaliated to tariffs imposed by US President Trump.
Ramaphosa will on Thursday deliver the annual State of the Nation Address (SONA), the first under his coalition government.
Investors will pay particular attention to comments on reforms and fiscal discipline.
“Rand sentiment hinges on SONA and US-China trade war developments. Stronger messaging on reforms and fiscal discipline could support South African assets,” said Andre Cilliers, currency strategist at TreasuryONE.
South African rand ends week on strong note, helped by gold and SARB
“Investors remain cautious, with global trade tensions keeping risk appetite subdued,” Cilliers added.
On the stock market, the Top-40 index last traded up about 0.4%.
South Africa’s benchmark 2030 government bond was firmer in early deals, with the yield down 4.5 basis points to 9.04%.
Comments
Comments are closed for this article.