File image: IOL
File image: IOL

Rand drifts weaker overnight

Time of article published Aug 12, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency shrugged off a slow start to the European session to claw back losses, amid ongoing Sino-US tensions, although caution will reign for the remainder of the shortened trading week ahead of a packed economic calendar according to NKC Research.

Yesterday’s release of manufacturing (+16.8 percent m-o-m) data will be followed by June retail sales later today while mining production for June is due tomorrow. At the close of local trade, the rand quoted 0.51 percent stronger at R17.55/$, after trading in range of R17.48/$ - R17.73/$. The rand drifted weaker overnight, as Asian stock markets traded in the red this morning. Expected range today R17.30/$ - R17.70/$.

South African bourse

The JSE All Share (+0.72 percent) tracked European stock markets higher yesterday. Sasol (+4.44 percent) warned yesterday that it will report an annual loss for the year ended June 30 following a steep drop in oil and chemical prices. Exxaro (+0.74 percent) also cautioned against a fall in profits – the coal miner said H1 income could plummet by as much as 34 percent due to one-off items. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.44 percent) traded higher.

Brent crude oil

The Brent oil price whipsawed to end little changed during yesterday’s European trading session. Expectations of more US economic stimulus drove prices close to recent highs, but a late price reversal meant that benchmark Brent crude futures quoted only 0.02 percent higher at $45.21pb. Crude prices traded steadier during Asian trade this morning.

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