File Image: IOL
File Image: IOL

Rand gains momentum as US trade tensions continue

By Reuters Time of article published Jul 2, 2019

Share this article:

The rand inched firmer yesterday, clinging on to a month’s worth of gains towards the crucial R14 mark despite the dollar recovering from its recent slump as trade tensions between Washington and Beijing thawed.

At 5pm, the rand bid at R14.0732 to the dollar, 3 cents firmer than at the same time, backtracking slightly after reaching a session-strongest R14.0375 before bids stalled just shy of the R14 technical resistance mark seen by traders as key to moves in either direction.

After tumbling to R15.170 on June7, the rand has advanced more than 7 percent to its firmest since mid-April, mostly aided by a dollar slide following the Federal Reserve’s dovish tone on lending rates.

The rand, however, faces pressure as demand switches back to the greenback following a reported truce between the US and China on the sidelines of the G20 summit over the weekend.

Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3 basis points to 8.125 percent.

On the JSE, the benchmark Top40 index ended up 0.51 percent at 52465.75 points, while the broader all share index gained 0.46 percent at 58472.52.

Among the gainers was bourse heavyweight Naspers, which rose 2.92 percent to R3519.20.

Further gains were curbed by the bullion sector which fell 5.64 percent weighed down by the spot gold price.

AngloGold Ashanti dropped 6.78 percent to R236.79. 


Share this article: