JOHANNESBURG. — South Africa’s rand steadied in early trade yesterday, as optimism surrounding trade talks between Washington and Beijing boosted market sentiment.
At 0615 GMT, the rand traded at 14,2425 per dollar, not far from its New York close of 14.2550 on Tuesday.
“The rand has remained surprisingly steady, trading in a fairly tight range,” said Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions.
“Some relief coming from the continuing trade talks is likely to provide the local unit with some breathing room, at least in the short term,” she added.
On Tuesday, US President Donald Trump downplayed the recent escalation of the trade war as “a little squabble” and said talks between the two countries had not collapsed.
South African-focused investors will look to March retail sales data due at 1100 GMT for clues on the health of the domestic economy.
In fixed income, the yield on the benchmark government bond due in 2026 fell by 1 basis point to 8,48 percent in early trade. — Reuters.