FX News: Rand Moves, EM Currencies Slip | FinanceBrokerage
0

FX News: Rand Moves, EM Currencies Slip

FX News – The South African rand remains under volatile trading after the release of economic data for the country. In the previous sessions, it fluctuated in line with the developments of the US-China trade war. Emerging market currencies continue to be under pressure.

Late last Friday, the rand firmed after China eased trade war concerns. China’s move also improved appetite for risky assets.

On the flipside, the rand is still set for its worst month against the greenback since February. This comes amid intense worries over an impending global recession.

The rand started moving after China said last Thursday that it had begun talking with the US. This provided slight relief after the trade dispute escalated in the previous week.

According to one senior market analyst, there could be hopes for a resolution as long as the two sides are communicating.

The rand shares close trade ties with China, relying on imports and exports. Any development or lack of progress in the US-China trade war affects the rand greatly.

FX News: Other Emerging Currencies Under Pressure

Meanwhile, other emerging market currencies also suffer from global economic uncertainty.

Argentina, for example, is experiencing a financial crisis. S&P on Thursday cut 3 notches from Argentina’s long-term credit rating. This pushed the figure deeper into the red. Last Wednesday, the government announced that it wanted to “re-profile” $100 billion in the country’s debt.

For emerging markets, though, dollar bonds have become a refuge. Investors from the markets are turning to dollar debts as the US-China row gets ready to push the world into recession.

Other Figures

As for other currencies, the dollar reached a monthly high as it also benefitted from easing in the trade war.

The US dollar index was up around 0.1% last Friday, trading at 98.528.

The euro ended the week floundering after comments from Christine Lagarde. Lagarde said there will be little immediate chance in policy direction when she steps up as the new European Central Bank president.

Read more FX News: Rand Dips before Trade Data

Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!

Leave a Reply

Sending

Subscribe to Our Newsletters

Have the best of Finance Brokerage News delivered directly to your mailbox. Subscribe now to receive the latest market news.

Welcome to Email Subscribers Group Selector