JOHANNESBURG. — South Africa’s rand firmed against the dollar in early trade yesterday as investor demand for riskier assets rose after China and the United States agreed to a ceasefire in their trade war that has shaken global markets.
At 0605 GMT, the rand traded at 13,7600 per dollar, 0,65 percent firmer than its New York close on Friday of 13,8500. The currency hit a session high of 13,6950, after opening at 13,7625 a dollar.
China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences with fresh talks aimed at reaching an agreement within 90 days.
“Investors, who had been spooked by the trade wars, are certainly relieved,” Bianca Botes, treasury manager at Peregrine Treasury Solutions, said in a note.
South Africa-focused investors are waiting for the release of third-quarter GDP numbers today and current account figures for the three months to September on Thursday.