BofA update shows where active managers are putting money
South Africa’s rand advanced against the U.S. dollar, buoyed by investor anticipation of President Cyril Ramaphosa’s upcoming national address and ongoing observations of the U.S.-China tariff discussions.
Accordingt to Reuetrs, the rand stood at 18.55 per dollar at 1507 GMT, marking a 0.7% increase from its last close. This movement coincided with the dollar’s 0.6% decline against a basket of major currencies following China’s response to tariffs implemented by U.S. President Donald Trump.
Investors are gearing up for President Ramaphosa’s State of the Nation Address (SONA) scheduled for Thursday, which will be his first since the formation of the coalition government. Market participants are particularly interested in Ramaphosa’s stance on economic reforms and maintaining fiscal discipline.
According to Andre Cilliers, a currency strategist at TreasuryONE, the rand’s performance is currently dependent on the outcomes of the SONA and the progression of the U.S.-China trade conflict. Cilliers emphasized that a strong commitment to reforms and fiscal prudence could bolster South African assets.
Despite the rand’s gains, investors maintain a cautious stance due to the persistent global trade tensions, which continue to dampen the appetite for riskier investments. Cilliers noted that these concerns are keeping investors vigilant.
In the equities market, the Top-40 index on the Johannesburg Stock Exchange closed up by approximately 0.3%. Additionally, South Africa’s government bonds showed signs of strength, with the benchmark 2030 bond yield decreasing by 4 basis points, settling at 9.045%. The bond market’s performance further reflects the cautious optimism prevailing among investors as they await key economic and political developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.