The South African currency failed to benefit from a softening trade-weighted greenback as local woes overshadowed external reprieve according to NKC Research.
Caution surrounding the details of a tense ANC meeting over the weekend kept the local unit on the back foot, as the ruling party’s infighting is becoming more overt. Speculation over cabinet changes kept the mood sombre. We still expect the rand to ride the tailwinds of a weakening dollar, with the first phase of a multi-year downswing currently underway.
At the close of local trade, the rand quoted 2.17 percent weaker at R16.93/$, after trading in range of R16.55/$ - R16.97/$. The rand traded firmer this morning despite Eskom’s announcement of Stage 2 loadshedding. Expected range today R16.60/$ - R17.00/$.
South African bourse
The JSE All Share (-1.04 percent) ended lower yesterday, as a weak rand performance weighed down large financial (-3.64 percent) stocks. In local news, Sasol (-3.56 percent) said its US manufacturing facilities in Lake Charles remain closed after Hurricane Laura made landfall last week. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.79 percent) slumped in risk-off trading.
Brent crude oil
The Brent oil price struggled to gain traction on Monday as weak crude demand persisted in a well-supplied market. At the close of local trade, benchmark Brent crude futures quoted 0.11 percent softer at $46.02pb. Crude prices traded flat during Asian trade this morning.
Like the Business Report on Facebook by clicking here or follow us on Twitter @Busrep.
You can also follow the Business Report on Instagram here
BUSINESS REPORT ONLINE