Views Article – Sharenet Wealth

Africa, Forex

South African rand firms ahead of U.S.-China trade deal signing

JOHANNESBURG (Reuters) – South Africa’s rand strengthened against the dollar early on Monday as the imminent signing of the Sino-U.S. Phase 1 trade deal boosted risk appetite globally, though a power crunch that has dimmed the domestic economic growth outlook remained a risk.

* By 0630 GMT, the rand traded at 14.3100 per dollar, 0.45%firmer than its close on Friday. * The trade agreement, due to be signed at the White Houseon Wednesday, marks the first step towards ending a damaging18-month trade dispute between the world’s two largesteconomies. * The rand has struggled for momentum in recent weeks aspower cuts and weak domestic economic data failed to provide abasis for optimism. * Troubled state utility Eskom said it did not plan toimplement rotational power cuts on Monday, but cautioned itwould do so if it lost generation units during the day. * The focus shifts to South African Reserve Bank’s monetarypolicy meeting on Thursday, when it will announce its interestrate decision after keeping rates on hold at 6.5% at its lastmeeting. * In fixed income, the yield on the benchmark instrument duein 2026 was down 1 basis point to 8.215%.

(Reporting by Olivia Kumwenda-Mtambo; editing by Uttaresh.V)

South African Rand coins are seen in this photo illustration

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