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At 1400 GMT, the rand was traded at 13.8500 dollars the dollar, or 0.05% firmer, after closing Friday at 13.8575.
Picture: EWN.
JOHANNESBURG – The South African rand strengthened slightly against the dollar's slide on Monday, alongside emerging markets, while the US Federal Reserve's rising cycle indices in 2019 and the meeting remained focused high stakes between Chinese and American leaders.
Equities strengthened, along with other emerging markets, thanks to improved confidence.
At 1400 GMT, the rand was traded at 13.8500 dollars the dollar, or 0.05% firmer, after closing Friday at 13.8575.
"The local currency should be trading less than 14 hours at the moment. The focus will be on the major world events: the meeting between the United States and China; speech by the Federal Reserve Chairman to the media, "said Bianca Botes of Peregrine Treasury Solutions.
The rand remains under pressure before the speech of the US Federal Reserve Chairman Jerome Powell and the minutes of the policy meeting that could give clues on the 2019 rates, since an increase is expected in December.
At a G20 meeting in Buenos Aires on November 30, US President Donald Trump and Chinese President Xi Jinping are expected to discuss contentious trade issues that could affect currency, in anticipation of the next scheduled escalation of tariff increases.
The rand reached its highest level in three months after S & P Global Ratings maintained its foreign and local currency ratings unchanged on Friday with a "stable" outlook.
Bonds were lower, as the benchmark 2026 benchmark yield rose 2.5 basis points to 8.960%.
In equities, the top 40 blue chips gained 45745 points, versus 2.27%, while the All Share index gained 1.96% to 51,690 points. Banks were 3.48% firmer.
"A lot of relatively modest things have happened over the past week that have improved the sentiment, but most importantly, the market is hoping that Donald Trump and China will reach an agreement on Friday," said Wayne McCurrie, Portfolio Manager. at FNB Wealth and Investments.
Trump and Xi are expected to meet on the sidelines of a G20 summit in Argentina at the end of this week.
Retailer Pepkor Holdings Ltd, formerly Steinhoff Africa Retail, was fined 5 million rand by the Johannesburg Stock Exchange (JSE) for non-compliance with registration requirements, including loans to directors or key management in its pre-registration statement and 2017 financial results.
"It's actually quite serious and I have never seen it happen before. The fine is nothing, but what the JSE says is that they lied in their prospectuses and did not disclose important information. They could align themselves for future actions of future shareholders in anger, "McCurrie said.
Pepkor closed up 7.55% to 19.79 rand.
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