Photo: IOL
Photo: IOL

WATCH: Rand advances against the greenback

By Compiled by Dhivana Rajgopaul Time of article published Jun 22, 2020

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JOHANNESBURG - The rand clawed back some losses after second wave coronavirus infection fears across the globe clipped risk assets during the previous session according to NKC Research. 

While aversion ebbed somewhat, geopolitical tensions curbed risk appetite, as China and India remained in a border confrontation while diplomatic talks between Washington and Beijing retained a tense quality. Rising US-Sino tensions threaten to partially eclipse US growth potential, straining the fledgling recovery underway. Second-wave infection concerns continue to undermine appetite for the risk-sensitive rand, although the local unit is expected to tune into the supplementary budget slated for June 24 for directional guidance. With the monetary authorities nearing the end of the stimulus rope – in consideration of the inflation-targeting framework – recovery prospects primarily hinge on the fiscal response to the pandemic. At the close of local trade, the rand quoted 0.60 percent firmer at R17.32/$, after trading in a range of R17.28/$ - R17.49/$. Expected range today R17.20/$ - R17.50/$.

South African bourse

The JSE All Share (+0.52 percent) ended higher on Friday driven mainly by gains in large gold mining stocks (+7.76 percent). In the overall emerging market sphere, the MSCI Emerging Market Index (+0.62 percent) traded on the front foot.

Brent crude oil

The Brent oil price toped a key level on Friday after OPEC and its allies promised to stick to production cuts. At the close of local trade, benchmark Brent crude futures quoted 2.27 percent stronger at $42.86pb. Crude prices traded steady during Asian trade this morning.

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