Photo: IOL
Photo: IOL

WATCH: Rand likely remain under pressure as it moves closer to the R18/$ threshold.

By Compiled by Dhivana Rajgopaul Time of article published Mar 23, 2020

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JOHANNESBURG - The South African currency clawed back losses on Friday after the South African Reserve Bank introduced a host of new liquidity measures, but the local unit remained near multi-year lows against the greenback according to NKC Research. 

The US dollar eased somewhat after six major central banks announced coordinated action to enhance the provision of liquidity through the standing dollar swap line arrangements. At the close of local trade, the rand quoted basically unchanged at R17.35/$, after trading in range of R17.16/$ - R17.54/$. The rand traded weaker overnight and will more than likely remain under pressure as it gradually moves closer towards the R18/$-threshold.

South African bourse

The JSE All Share (+6.08 percent) concluded Friday’s session on a firmer footing following an extremely volatile week. The local bourse decided against shortening trading hours after consulting with various market participants last week. JSE chief executive, Leila Fourie said the bourse would enforce stricter rules aimed at addressing the growing liquidity crunch by prohibiting uncovered short selling. The recent sell-off has whipped out R4.5 trillion from the JSE’s market cap. In the overall emerging market sphere, the MSCI Emerging Market Index (+4.80 percent) traded higher.

Brent crude oil

The Brent oil price retreated from earlier highs after the Kremlin rejected President Trump’s remediation efforts in Russia’s price war with Saudi Arabia. At the close of local trade, benchmark Brent crude futures quoted 2.19 percent lower at $28.17pb. Crude prices traded firmer during Asian trade this morning.

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