South Sudan says agrees oil exploration deal with South Africa
The rand strengthened on Thursday morning to reach its best level since mid-April, with the local currency breaking through the R14/$ mark.
The rand has been supported by expectations that central banks in Europe and the US will cut interest rates, along with strong gold prices and “ongoing carry trade by yield seekers”, Bianca Botes, treasury partner at Peregrine Treasury Solutions, said in a note on Thursday.
The currency has also been boosted by SA’s trade surplus in May and a slight improvement in the domestic business confidence index.
The rand was at R13.9566/$ in early trade on Thursday, a 0.7% gain for the day.
Meanwhile, the local currency was 0.6% stronger against both the pound and euro, at R17.5649/£ and R15.7549/€.
“The rand is defying the current rhetoric by US President Donald Trump as he accuses China and the eurozone of currency manipulation, which normally would equate to some uncertainty in the markets, which is normally bad for emerging-market currencies,” said Andre Botha, senior dealer at TreasuryOne.
Gold was slightly weaker on Thursday morning at $1,413.42/oz, with US markets closed for Independence Day.Source: Business Day Live