Share

Rand firms to under R13.20/$ in early trade

The rand, which ended last week on a high, passed the R13.20/$ level on Monday morning, after opening at R13.28 to the greenback. 

By 11.30, the local currency was changing hands at R13.19/$, up 0.58%.

Bianca Botes of Peregrine Treasury Solutions said in a morning note that the rand had not yet reacted to weekend news that President Cyril Ramaphosa had secured billions of dollars in investment during his trip to three oil-producing countries. 

Ramaphosa rounded off his visit with Saudi Arabia and the United Arab Emirates each pledging $10bn in investment.

"We might see some more information regarding the investment filter through to the market [on Monday]," she said. 

Wichard Cilliers, director and head of dealing at TreasuryONE, said the week ahead would be important for the rand, with the SA Reserve Bank's Monetary Policy Committee announcing its latest repo rate decision on Thursday. 

"The SARB is expected to maintain rates despite the weaker growth environment, and we believe that this will maintain a more resilient environment for the rand," he said. 

Stats SA, meanwhile, will be releasing its Consumer Price Index data for June, and retail sales for May on Wednesday.  

The global picture 

On the international front, Hussein Sayed, chief market strategist at FXTM, said the rand would likely react to the release of US retail sales figures on Monday afternoon.

"An impressive US retail sales report may support rate hike expectations consequently enforcing downside pressures emerging market currencies, including the rand," he said. 

Meanwhile analysts say the rand would continue to respond to international events this week, with Chinese reaction to US President Donald Trump's trade tariff war in particular being closely watched by markets. 

"China still has yet to respond to the new threat which is likely to dominate the headlines again. It will also be interesting to see if today’s EU - China summit will lead to a stronger coalition between the two economic powers as both continue to struggle with Trump’s administration," said Sayed. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders