Business & Finance

South Africa’s rand slips on U.S-China trade deal delay

South Africa’s rand dipped in early trade on Thursday, extending a slide from the previous session, sparked by a possible delay in the signing of a U.S.-China trade deal to ease a dispute that has weighed on the global economy.

At 0630 GMT, the rand was 0.1% weaker at 14.8400 per dollar. The currency fell on Wednesday following a three-session rally after Moody’s kept the country’s last investment grade credit rating intact on Friday.

A senior official of the Trump administration told Reuters on Wednesday a meeting between U.S. President Donald Trump and Chinese President Xi Jinping to sign a long-awaited interim trade deal could be delayed until December as discussions continue over terms and venue.

The news put a spoke in recent appetite for emerging and commodity-linked currencies, sparking rand selling as the unit, alongside currencies like the Australian dollar, is often used as a liquid hedge for risk.

Upcoming economic data locally, with business confidence and industrial production figures due in the session, also put the brakes on the rand with investors keen gauge whether growth will gain momentum going into year-end.

Bonds were steady, with the yield on the benchmark paper due in 2026 flat at 8.4%.

Source: Voice of Nigeria