Picture: Karen Sandison/African News Agency(ANA)
Picture: Karen Sandison/African News Agency(ANA)

Rand slips to lowest level in two months

Time of article published Aug 5, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency fell to its weakest level since mid-June amid risk-off trade according to NKC Research.

Mediocre local data releases and global fears of second-wave infections coupled with a brief dollar jump were the driving factors behind the rand’s demise yesterday. That said, United States lawmakers remain divided over another fiscal care package, which is pressuring the greenback. Investors will focus on today’s US Treasury refunding announcement ahead of Friday’s monthly employment figures. At the close of local trade, the rand quoted 1.43 percent weaker at R17.42/$, after trading in range of R17.12/$ - R17.53/$. The rand regained strength overnight. Expected range today R17.15/$ - R17.50/$.

South African bourse

The JSE All Share (+0.75 percent) ended higher yesterday on the back of a 2.65 percent gain in large gold mining stocks. In local news, South African Breweries, owned by Anheuser-Busch InBev (+4.29 percent), said it will abandon R5bn in planned investments in SA due to a slump in revenue following a near three-month ban on alcohol sales. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.09 percent) traded on the front foot.

Brent crude oil

The Brent oil price whipsawed yesterday to end the session little changed as surging coronavirus cases weighed on a potential recovery in global fuel demand. At the close of local trade, benchmark Brent crude futures quoted 1.05 percent higher at $44.21pb. Crude prices consolidated gains during Asian trade this morning.

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