Rand Trading Strong …Until China & USA Work Out Trade Issues
The Rand was trading around R14.84 to a US$ at the start of the weak as investors and speculators continue to hold back on buying Dollars. The USA and China’s trade war has seen the Dollar be less popular than normal and the decent returns on other currencies has lead many right to the Rand.
There has been such a push for Rand recently that Government released another massive amount of bonds to take advantage of the recent spike and international appetite. National Treasury announced two new bonds worth $5 Billion (which is only $1 Billion more than expected – wow). They obviously see people wanting to snap them up.
Many investors anticipate that if and when the USA and China resolve most of their trade issues the Dollar will pick up. At the same time, President Trump is still going around calling for the US to institute a negative interest rate as has been seen in other markets. Most economists see this as a bad idea.