Rand strengthens after Chinese R198 billion investment

Rand - [Google Images]

The rand opened mostly directionless yesterday hovering at levels above R13.45 to the dollar before getting some much-needed inspiration from President Cyril Ramaphosa’s announcement that China would invest $14.7 billion (about R198 billion) in South Africa.

Ramaphosa’s announcement, at a news conference after talks with Chinese President Xi Jinping, sparked a rally in the rand spurring the domestic currency more than 1 percent firmer to a three-day best against the dollar, which according to analysts triggered some offshore demand for the currency.

At 5pm the domestic currency was bid 20c firmer than Monday’s same time bid, at R13.30 to the greenback. Against the pound, the rand rallied 21c to R17.50 and to the euro the local unit strengthened 23c to R15.57.

At 10:30 this morning the rand was at R13.25 to the dollar. The pound stood at R17. 42 to the dollar and the euro is at R15,49 to the rand.