Rand waits on US-China trade war
13 May 2019 - by
South Africa’s rand fell as much as 1% to 14.315 against the US dollar on Monday morning, reversing last week's gains amid uncertainty over the future of US-China trade relations.
This after the rand gained as much as 0.2% to $14.338 on Friday after election results which gave a majority of 57.5% to the ruling African National Congress (ANC).
"In spite of last week’s election and a perceived investor-friendly outcome, the rand has been largely driven by international factors with the election contributing only marginally to its direction," said Bianca Botes of Peregrine Treasury Solutions in an update to clients on Monday morning.
The election outcome, which met analyst and investor expectations as the ANC secured the national vote, was well received by the market.
“In short, the outcome brings policy certainty back into the market which, coupled with the notion that no coalition government will be formed, will inject some positivity for the rand, which could help it to break lower and maybe test the R14/$ level,” said senior currency dealer at TreasuryONE, Andre Botha.