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