The South African rand held steady in early Monday trading as investors looked ahead to critical U.S.-China trade talks scheduled for later in the day—negotiations that could ease tensions between the two economic giants.
As of 06:21 GMT, the rand was trading at 17.7450 to the U.S. dollar, hovering near Friday’s closing level. The stability comes as three senior advisers to former U.S. President Donald Trump are set to meet with Chinese officials in London to address the ongoing trade dispute, a standoff that has kept global markets in a state of uncertainty.
Similar to other risk-sensitive currencies, the rand is highly influenced by global economic signals, including U.S. policy decisions and macroeconomic data, as well as local developments.
Domestically, investors will be closely monitoring the release of manufacturing (ZAMAN=ECI) and mining (ZAMNG=ECI) figures this week to assess the current state of South Africa’s industrial sector.
There is also continued focus on the country’s delayed budget process. Finance Minister Enoch Godongwana recently made a third attempt to push it through, offering only modest changes to expenditure plans and deficit targets. On Wednesday, the National Assembly is expected to deliberate on the revised fiscal framework that was approved by a key parliamentary committee last week.
Meanwhile, South Africa’s benchmark 2035 government bond remained flat in early trading, with the yield steady at 10.075%.
