Photo: File
Photo: File

Rand retreats from a six-month high

Time of article published Sep 21, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency withdrew on Friday after hitting its best level in six months against the USD last week, following the central bank’s decision to leave interest rates unchanged on Thursday according to NKC Research.

Meanwhile, the government has prioritised funds to rescue South African Airways (SAA), one of its administrators said on Friday. The embattled state-owned airline needs around R10.5 billion to get going again. We believe that external factors are set to remain supportive, a weaker US dollar, buoyant commodity prices, and a healthy recovery in credit and industrial activity in China imply the rand could continue to rally.

At the close of local trade, the rand quoted 0.45 percent weaker at R16.26/$, after trading in range of R16.09/$ - R16.27/$. Expected range today R16.00/$ - R16.40/$.

South African bourse

The JSE All Share (-0.66 percent) continued to reverse gains on Friday, following a strong start to the week, as poor retail sales data and a host of dreary company outlooks weighed on risk appetite. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.15 percent) traded higher.

Brent crude oil

The Brent oil price was a mixed bag to end the week on Friday. Libyan commander Khalifa Haftar said a blockade on the country’s oil exports would be lifted for a month. Prior to the blockade, Libya pumped nearly 1.2 million bpd compared with around 100,000 bpd presently. At the close of local trade, benchmark Brent crude futures quoted 0.41 percent lower at $43.41pb. Crude prices were steady during Asian trade this morning.

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