South Africa's rand firms as global monetary easing takes spotlight

South Africa's rand inched up against the dollar in early trade on Friday. The rand was 0.05% firmer at 14.592
13 Sep, 2019
  • South Africa's rand inched up against the dollar in early trade on Friday.
  • The rand was 0.05% firmer at 14.5925 per dollar, from its Thursday close of 14.6000.
  • As global monetary easing and hints of progress in the U.S.-China trade dispute buoyed risk appetite.

At 0610 GMT, the rand was 0.05% firmer at 14.5925 per dollar, from its Thursday close of 14.6000.

"The local unit seems to be star struck by global markets as all elements move in favour of the rand. The past two weeks have seen markets turn from skittish and risk averse, to an emerging market dream," Bianca Botes, Treasury Partner at Peregrine Treasury Solutions said in a note.

The rand drew support from new stimulus measures by the European Central Bank (ECB) after it promised an indefinite supply of fresh asset purchases and cut interest rates deeper into negative territory to support the economy.

The ECB news further buoyed riskier bets, already boosted by signs of detente in the U.S.-China trade war.

Bonds were flat, with the yield on the benchmark instrument due in 2026 at 8.11%.

 

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