Photo: IOL
Photo: IOL

WATCH: Rand claws back yesterday’s losses overnight

By Dhivana Rajgopaul Time of article published May 26, 2020

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JOHANNESBURG - The South African currency steadied amid thin trading volumes as cautious optimism surrounding a recovery in global trade growth was put against concerns that simmering US-Sino tensions will smother risk appetite according to NKC Research. 

Holiday celebrations meant that a wide spectrum of markets across Asia, Europe and the United States were closed yesterday. On domestic soil, South Africans welcomed the announcement that the next level of the phased reopening of the economy will commence on June 1. At the close of local trade, the rand quoted 0.35 percent weaker at R17.66/$, after trading in range of R17.54/$ - R17.72/$. The rand clawed back yesterday’s losses overnight. Expected range today R17.30/$ - R17.70/$.

South African bourse

The JSE All Share (-0.15 percent) ended slightly lower yesterday. In local news, Tiger Brands (-5.65 percent) announced yesterday that it would scrap its interim dividend, as earnings per share dropped by 35 percent during H1 2020. The local food producer also said that it would have to dismiss a “significant” number of people as a result of the economic carnage caused by the coronavirus. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.68 percent) traded higher.

Brent crude oil

The Brent oil price traded steady throughout most of yesterday’s session but jolted higher in the afternoon. At the close of local trade, benchmark Brent crude futures quoted 1.53 percent firmer at $35.73pb. Crude prices extended gains during Asian trade this morning.

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