JOHANNESBURG - On Friday, while SA celebrated women’s day, the global market was anything but kind to the local currency. The rand started the day at R14.98/$, but rapidly made its way to R15.28 by the end of the US session.
The rand is now testing the R15.30 mark, with all eyes still squarely on investor sentiment hinging on trade dynamics and global growth.
It’s quiet on the data front today, with the Federal monthly budget statement being the only noteworthy event on the calendar.
Donald Trump’s comment on Friday that trade talks with China due to start on 1 September might be cancelled, after also having announced additional tariffs on China, is adding pressure to the fragility of investor sentiment. Trump also made it clear that the US is in no way ready or willing to make a deal at this stage but that if talks continue it will be on an open basis.
The rand starts Monday trading at R15.25/$, R17.09/€ and R18.36/£.
The general consensus is that the rand is oversold at these levels and that a retracement is on the cards. The only question, however, is whether the global geopolitical environment will allow for this correction.