Rand flat after overnight rally on Sino-US trade cheer

Markets are awaiting a raft of data releases from the UK, Europe and the United States due on Tuesday, covering jobs, trade balance, and industrial and manufacturing production.

Picture: EWN.

LONDON - The rand was trading flat against the dollar on Tuesday after an overnight rally fuelled by optimism over an interim trade deal between Washington and Beijing.

Rand was trading at 14.3560 versus the greenback, as of 0545 GMT, 0.07% stronger from the previous close.

“Overnight trade saw the rand briefly break below the R14.35/$ mark,” Peregrine Treasury Solutions said in a note, as markets around the world thrived on improved sentiment after a thaw in the 17-month-old trade dispute.

Markets are awaiting a raft of data releases from the UK, Europe and the United States due on Tuesday, covering jobs, trade balance, and industrial and manufacturing production.

“Should the euphoria continue we can even look for a break below the R14.30 mark,” Peregrine said.

Government bonds also strengthened, with the yield on benchmark 2026 instrument falling 2.5 basis points to 8.265%.