File image: IOL
File image: IOL

WATCH: Rand extended gains during early morning trade

By Compiled by Dhivana Rajgopaul Time of article published May 11, 2020

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JOHANNESBURG - The South African rand clung to receding risk sentiment related to easing US-Sino trade tensions and optimism surrounding the gradual re-opening of economies across the globe according to NKC Research. 

Risk appetite improved on the back of reports that the US and China agreed to strengthen economic and public health cooperation to ease diplomatic tensions, while Australia, Japan and Pakistan were the latest countries to loosen lockdown restrictions. On domestic soil, the South African Labour Court ordered the SAA – the national carrier – rescue team to withdraw layoff notices as the issuing thereof was “procedurally unfair.” At the close of local trade, the rand quoted 1.25 percent firmer at R18.32/$, after trading in range of R18.31/$ - R18.62/$. The . Expected range today R18.00/$ - R18.45/$.

South African bourse

The JSE All Share (+1.97 percent) ended in positive territory on Friday, led by gains across the board, as stock markets everywhere shrugged of dismal US jobs numbers. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.65 percent) traded higher.

Brent crude oil

The Brent oil price decreased after trading in a narrow band on Friday, following a batch of poor economic data. However, losses were capped by the fact that economies around the globe are gradually relaxing lockdown restrictions. At the close of local trade, benchmark Brent crude futures quoted 1.13 pecent lower at $29.69pb. Crude prices traded on a softer footing during Asian trade this morning.

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