JOHANNESBURG. — South Africa’s rand dipped in early trade yesterday, extending a slide from the previous session, sparked by a possible delay in the signing of a US-China trade deal to ease a dispute that has weighed on the global economy.
At 0630 GMT, the rand was 0,1 percent weaker at 14,8400 per dollar. The currency fell on Wednesday following a three-session rally after Moody’s kept the country’s last investment grade credit rating intact on Friday.
A senior official of the Trump administration told Reuters on Wednesday a meeting between the US president and Chinese President Xi Jinping to sign a long-awaited interim trade deal could be delayed until December as discussions continue over terms and venue.
The news put a spoke in recent appetite for emerging and commodity-linked currencies, sparking rand selling as the unit, alongside currencies like the Australian dollar, is often used as a liquid hedge for risk. — Reuters.