Rand gains on dollar weakness, as markets await effect of Trump tariffs | Fin24

Rand gains on dollar weakness, as markets await effect of Trump tariffs

Jul 09 2018 12:40
Lameez Omarjee

The rand, which made some gains on the back of dollar weakness last week, was trading below the R13.40/$ level by mid-morning on Monday.

The local currency opened at R13.47 and by 12:21 it was trading 0.7% stronger at R13.37/$.

"It is important to note that it is not rand strength but rather dollar weakness currently impacting on the local unit and the domestic story of weak growth and structural challenges remains the same," said Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions in a morning note. 

Andre Botha, senior currency dealer at TreasuryONE, added in a market update that the rand would get most of its momentum from political and economic events abroad.

"The most glaring of these will be the market reaction to tariffs that were imposed by the US and retaliation from China.

"So far the market has taken it in its stride as we can safely say the tariffs have been priced in and any market movement will happen should the current status quo change," he said. 

Analysts from NKC African Economics, meanwhile, expect the rand to trade within a range of R13.30/$ and R13.50/$ on Monday.

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rand  |  markets  |  currencies


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