South Africa’s rand started the week stronger on Monday, extending last week’s gains as global risk appetite increased following signs U.S. President Donald Trump’s health was improving after he contracted COVID-19.
Trump’s positive coronavirus test last week rattled global financial markets ahead of the Nov. 3 presidential election,
but one of Trump’s doctors said the president’s condition was getting better on Sunday. 0635 GMT, the rand ZAR=D3 traded at 16.4375 against the U.S. dollar, more than 0.6% above its previous close.
Other emerging market currencies, such as the Russian rouble RUB= and Turkish lira TRY= also gained against the U.S. currency.
South Africa-focused traders will look to PMI data ZAPMIM=ECI at 0715 GMT for more clues about the health of Africa’s most industrialised economy, which has been badly bruised during the COVID-19 pandemic.
Official projections are for a gross domestic product contraction of at least 7% in 2020.
Other data releases this week include gold and forex reserves ZAFXRS=ECI , business confidence ZABCI=ECI and manufacturing output ZAMAN=ECI .
Government bonds firmed slightly in early deals, with the yield on the 2030 instrument ZAR2030= down 1 basis point to 9.42%.