JOHANNESBURG. — South Africa’s rand held steady in early trade yesterday, with the dollar subdued and markets hopeful that an all-out U.S.-China trade war could be averted. At 0731 GMT, the rand traded at 13.8775 versus the US currency, 0,1 percent weaker compared to its previous close.
The rand was helped by optimism following trade talks between the United States and China, while the dollar remained under pressure after Federal Reserve policymakers signalled they were becoming more cautious about future interest rate hikes.
The dollar index, which tracks the greenback against a basket of major peers, was 0.08 percent weaker.
South Africa was due to publish November manufacturing data and see the release of a December business confidence index later on Thursday, two factors that could also steer trade in the rand.
The benchmark 2026 government bond was slightly stronger, while stocks opened on the defensive with the Johannesburg Stock Exchange’s top-40 index down 0,6 percent. — Reuters.