Rand firms as China’s comments ease trade-war jitters

29 August 2019 - 16:59 By Odwa Mjo
Picture: REUTERS
Picture: REUTERS

The rand was firmer on Thursday afternoon after China said it hopes the US will create conducive conditions for the two to negotiate trade terms next month.

China’s foreign ministry spokesperson Gao Feng said on Thursday that the two economic superpowers have started discussing face-to-face negotiations, which are expected to take place in September.

The latest development in the lengthy trade dispute improved risk appetite with the rand leading gains in emerging-market currencies on Thursday afternoon.

At 2.35pm, the rand had firmed 0.82% to R15.2869/$, 0.79% to R18.6790/£, and 0.86% to R16.9277/€. The euro was flat at $1.1074.

Gold was little changed at $1,539.55/oz while platinum  was up 2.43% to $925.56. Brent crude added 0.13% to $60.52 a barrel.

Producer price inflation slowed to 4.9% in July from June’s 5.8%, below Bloomberg’s consensus of 5.3%