Rand gives way to rising greenback

Photo: File

Photo: File

Published Sep 28, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency slumped during afternoon trade to pare early session gains as a resurgence in Covid-19 infections saw investors shed risk assets according to NKC Research.

The local unit gave way to the trade weighted US dollar on Friday, which surged close to a two-month high against a basket of currencies, amid economic recovery doubts and political developments in the US.

At the close of local trade, the rand quoted 1.38 percent weaker at R17.14/$, after trading in range of R16.81/$ - R17.26/$. The rand inched marginally stronger during premarket trading this morning. Expected range today R16.90/$ - R17.20/$.

South African bourse

The JSE All Share (-1.22 percent) stumbled at the end of last week as global stock markets suffered a disappointing week of losses. Large telecom (-3.95 percent) and tech (-2.18 percent) stocks were among the day’s biggest laggards as market heavyweight Naspers dropped by 2.16 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.13 percent) traded higher.

Brent crude oil

Brent oil struggled to gain momentum last week as mounting concerns over weak fuel demand, amid widespread resurgence in Covid-19 infections, weighed down crude prices. At the close of local trade, benchmark Brent crude futures quoted 0.52 percent lower at $41.83pb. Crude prices ticked weaker during Asian trade this morning.

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