File image: IOL
File image: IOL

WATCH: Rand oscillates in a narrow band over the weekend

By Compiled by Dhivana Rajgopaul Time of article published Jun 3, 2019

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JOHANNESBURG - The rand had a slow start during Friday’s session, as emerging market currencies tracked the peso in the wake of US President Donald Trump’s vow to punish Mexico for illegal immigration by introducing a tariff on all Mexican imports according to NKC Research. 

Higher tariffs will start at 5 percent on June 10, and will increase by five percentage points each month until reaching 25 percent in October, remaining in place until Mexico addresses the “influx of illegal aliens.” That said, the rand bounced back later in the session. At the close of local trade, quoted 1.6 percent stronger at R14.60/$, after trading in a range of R14.59/$ - R14.85/$. The rand oscillated in a narrow band over the weekend. Expected range today R14.40/$ - R14.70/$.

South African bourse

The JSE All Share (-0.1 percent) ended weaker on Friday, as the household goods & home construction (-2.1 percent) sector weighed. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.3 percent) traded higher. In local news, Tongaat Hulett (-7.5 percent) announced on Friday that its 2018 results could face a potential hit of between $3.5bn to $4.5bn, following a review of its accounting practices.

Brent crude oil

The Brent oil price stumbled towards its biggest monthly decline in six months on Friday, after Washington ramped up global trade tensions. At the close of local trade, benchmark Brent crude futures quoted 1.6 percent lower at $64.93pb. Crude fell late on Friday but steadied this morning.

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