20°C / 22°C
  • Thu
  • 24°C
  • 11°C
  • Fri
  • 23°C
  • 12°C
  • Sat
  • 24°C
  • 13°C
  • Sun
  • 26°C
  • 14°C
  • Mon
  • 25°C
  • 14°C
  • Tue
  • 23°C
  • 12°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 21°C
  • 14°C
  • Sun
  • 19°C
  • 12°C
  • Mon
  • 26°C
  • 12°C
  • Tue
  • 24°C
  • 14°C
  • Thu
  • 27°C
  • 14°C
  • Fri
  • 24°C
  • 15°C
  • Sat
  • 26°C
  • 15°C
  • Sun
  • 28°C
  • 16°C
  • Mon
  • 26°C
  • 15°C
  • Tue
  • 24°C
  • 14°C
  • Thu
  • 25°C
  • 11°C
  • Fri
  • 24°C
  • 12°C
  • Sat
  • 26°C
  • 15°C
  • Sun
  • 28°C
  • 14°C
  • Mon
  • 27°C
  • 13°C
  • Tue
  • 26°C
  • 14°C
  • Thu
  • 23°C
  • 19°C
  • Fri
  • 24°C
  • 19°C
  • Sat
  • 27°C
  • 20°C
  • Sun
  • 23°C
  • 17°C
  • Mon
  • 22°C
  • 16°C
  • Tue
  • 25°C
  • 19°C
  • Thu
  • 22°C
  • 17°C
  • Fri
  • 23°C
  • 16°C
  • Sat
  • 23°C
  • 15°C
  • Sun
  • 18°C
  • 13°C
  • Mon
  • 20°C
  • 12°C
  • Tue
  • 24°C
  • 14°C
  • Thu
  • 32°C
  • 16°C
  • Fri
  • 30°C
  • 17°C
  • Sat
  • 22°C
  • 11°C
  • Sun
  • 19°C
  • 9°C
  • Mon
  • 31°C
  • 9°C
  • Tue
  • 30°C
  • 15°C
  • Thu
  • 27°C
  • 16°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 20°C
  • 13°C
  • Sun
  • 16°C
  • 12°C
  • Mon
  • 24°C
  • 12°C
  • Tue
  • 24°C
  • 15°C
  • Thu
  • 28°C
  • 14°C
  • Fri
  • 26°C
  • 15°C
  • Sat
  • 27°C
  • 17°C
  • Sun
  • 29°C
  • 17°C
  • Mon
  • 28°C
  • 16°C
  • Tue
  • 23°C
  • 16°C
  • Thu
  • 26°C
  • 11°C
  • Fri
  • 28°C
  • 14°C
  • Sat
  • 31°C
  • 16°C
  • Sun
  • 26°C
  • 12°C
  • Mon
  • 29°C
  • 9°C
  • Tue
  • 32°C
  • 16°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 23°C
  • 15°C
  • Sat
  • 27°C
  • 16°C
  • Sun
  • 32°C
  • 14°C
  • Mon
  • 20°C
  • 13°C
  • Tue
  • 23°C
  • 14°C
  • Thu
  • 24°C
  • 15°C
  • Fri
  • 25°C
  • 15°C
  • Sat
  • 24°C
  • 13°C
  • Sun
  • 18°C
  • 11°C
  • Mon
  • 21°C
  • 10°C
  • Tue
  • 32°C
  • 14°C

Rand firmer as bulls wrestle bears ahead of G20

The rand advanced for a third straight session early on Friday, as easing trade tensions between Washington and Beijing supported risk buying going into the eagerly awaited G20 summit.

Picture: Christa Eybers/EWN

JOHANNESBURG - The rand advanced for a third straight session early on Friday, as easing trade tensions between Washington and Beijing supported risk buying going into the eagerly awaited G20 summit.

At 0645 GMT, the rand was 0.28% firmer at R14.1300, its strongest level since 22 April, bringing gains for this month to nearly 3%.

More than half of those gains came this week during an extended rally in some emerging market currencies after the US Federal Reserve last week reversed its hawkish stance on lending rates, knocking the greenback to a three-month low against the euro, while boosting the hunt for yield.

Hopes that the United States and China will agree a truce in their tariff war when their leaders meet at the G20 summit in Japan this weekend added to demand for risk currencies, with the rand’s domestic difficulties taking a backseat.

But some traders and technical analysts fear the rand’s rally may be a false move before it retreats - a so-called bear trap.

“For those that think this may be a bear trap again, and it could be a possibility, a daily close above yesterday’s open at R14.2275 and a move through yesterday’s highs will indicate a possible reversal,” said senior trader at Standard Bank Oliver Alwar.

The first obstacle for the rand comes in the form of May trade data due at 1200 GMT, with another deficit after April’s R3.43 billion ($243 million) shortfall likely to spur some selling.

Bonds were flat, with the benchmark 10-year government paper trading at 8.115%.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus