South Africa’s rand dips as U.S.-China trade deal uncertainty lingers

South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) – South Africa’s rand inched lower in early trade on Wednesday, tracking its emerging market peers in Asia as continued uncertainty about the outcome of U.S.-China trade talks kept big bets at bay.

At 0645 GMT, the rand was 0.15% weaker at 14.8250 per dollar from an opening level of 14.7930.

U.S. President Donald Trump said overnight that Washington was in the “final throes” of work on a deal to defuse the trade war, after top negotiators from the two countries spoke by telephone on Tuesday.

The comments boosted hopes that the dispute would be resolved by year-end. The dollar gained and Wall Street’s three major indexes hit all-time highs, with emerging market currencies slipping as a result.

Bonds were slightly weaker, with the benchmark government issue due in 2026 adding 0.5 basis point to 8.48%.

Reporting by Mfuneko Toyana; Editing by Subhranshu Sahu

Source link

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *