South African rand firmer as emerging markets regain ground

The South African currency note, Rand.

South Africa’s rand firmed against the dollar early on Tuesday as some emerging market currencies that sold-off sharply in recent weeks regained some lost ground.

At 0650 GMT the rand was 0.77 percent stronger at 15.0925 per dollar compared to a close of 15.2100 in New York.

Investors remain cautious in the rand though following second-quarter gross domestic product data last week which showed the economy entered into a recession.

The ramp-up in trade war rhetoric from Washington continues to rattle investor confidence as U.S. President Donald Trump said he was ready to impose tariffs on almost all Chinese imports, threatening additional duties on another $267 billion of goods.

Bonds were weaker, with the yield on the benchmark paper due in 2026 rising 1.5 basis points to 9.225 percent.

Peace PIAK