Loading...

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.

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

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication. twitter:

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

rand  |  markets  |  currencies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#SAVINGSMONTH

Five of SA's top financial brains, including SARB governor Lesetja Kganyago share their best savings habits.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Are you prepared for the latest round of Eskom’s load shedding??

Previous results · Suggest a vote

Loading...