File image: IOL
File image: IOL

WATCH: Rand extends gains overnight

By Compiled by Dhivana Rajgopaul Time of article published Jan 7, 2020

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JOHANNESBURG - The South African rand succumbed to uneasy sentiment early in the European trading session yesterday, amid escalating geopolitical tensions, as carry trade appeal dipped in favour of safe-haven currencies according to NKC Research. 

A flare-up in US-Iran tensions in the wake of the airstrike in Iraq sent risk assets weaker, which compounded selling pressure on the local unit as embattled power parastatal warned of a fragile grid. Load-shedding resumed over the weekend with high risk of power outages this week. However, a weaker dollar meant that the rand could claw back some losses during the afternoon. At the close of local trade, the rand quoted 0.39 percent stronger at R14.27/$, after trading in range of R14.21/$ - R14.37/$. The rand extended gains overnight. The expected range of the rand today R14.10/$ - R14.30/$.

South African bourse

The JSE All Share (-1.06 percent) ended weaker yesterday, amid broad risk-off sentiment, as a result of rising tensions in the Middle East. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.01 percent) traded on the back foot.

Brent crude oil

The Brent oil price surrendered initial gains yesterday, despite escalating tensions between the United States and Iran. At the close of local trade, benchmark Brent crude futures quoted 1.32 percent lower at $69.28pb. Brent crude prices traded softer during Asian trade this morning. 

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