File image: IOL
File image: IOL

WATCH: Rand falls to weakest level ever as the dollar flexes

By Compiled by Dhivana Rajgopaul Time of article published Mar 19, 2020

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JOHANNESBURG - Get the latest market update and top stories from our newsrooms across South Africa, Africa and the world.

The South African rand plunged to its weakest level ever yesterday as investors unwound positions to pile into the safety of dollar liquidity according to NKC Research.

The dash for cash pushed the trade weighted the dollar higher across the board as the Federal Reserve announced additional liquidity measures. On local soil investors sat on their hands ahead of today’s eagerly awaited monetary policy meeting, where we expect to see a 50-bps rate cut. At the close of local trade, the rand quoted 2.31 percent weaker at R17.05/$, after trading in range of R16.52/$ - R17.12/$. The rand extended losses overnight. NKC Research could see wide swings in the local unit today.

South African bourse

The JSE All Share (-7.15 percent) traded deep in the red yesterday, in step with plummeting global stock markets, weighed down by large banking (-14.90 percent) and platinum (-20.30 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-4.70 percent) traded weaker.

Brent crude oil

The Brent oil price took a tumble yesterday as lockdowns and travel restrictions continue to spread across the globe. At the close of local trade, benchmark Brent crude futures quoted 6.90 percent lower at $26.44pb. Crude prices traded on the back foot during Asian trade this morning.

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