Compiled by Dhivana Rajgopaul
JOHANNESBURG - A stronger performance by the trade-weighted USD placed pressure on most emerging market currencies during Wednesday’s session according to NKC Research.
The South African currency slumped as the country fell into darkness with loadshedding revised from stage 2 to stage 4. Embattled parastatal Eskom warned that loadshedding will persist throughout the week as the colder weather upped demand for electricity, with the increased pressure on the grid exacerbating a breakdown in multiple generation units.
At the close of local trade, the rand quoted 1.48 percent weaker at R16.88/$, after trading in range of R16.62/$ - R16.92/$. The rand remained under pressure overnight. Expected range today R16.70/$ - R17.00/$.
South African bourse
The JSE All Share (-0.12 percent) ended lower yesterday, dragged mainly by losses in large gold mining (-3.04 percent) and banking (-2.80 percent) stocks, after Eskom ramped up loadshedding to level 4. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.10 percent) traded weaker.
Brent crude oil
The Brent oil price fell suddenly yesterday afternoon, following a sharp rise in the greenback. At the close of local trade, benchmark Brent crude futures quoted 1.18 percent lower at $45.36pb. Crude prices remained downbeat during Asian trade this morning.