File image: IOL
File image: IOL

WATCH: Rand reaches a nine week high against the dollar

By Compiled by Dhivana Rajgopaul Time of article published May 29, 2020

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JOHANNESBURG - The South African rand briefly touched a nine-week high against the greenback yesterday on the back of optimism surrounding phased global reopening according to NKC Research. 

However, the local unit ran out of steam mid-session as US-Sino tensions outweighed positive sentiment. At the close of local trade, the rand quoted 0.56 percent weaker at R17.44/$, after trading in range of R17.30/$ - R17.47/$. The rand traded slightly firmer in early Asian trading this morning ahead of a slew of local data releases today. Expected range today R17.40/$ - R17.70/$.

South African bourse

The JSE All Share (+1.77 percent) ended firmer yesterday despite brewing tensions between Beijing and Washington, which knocked emerging markets sentiment. In domestic news, Old Mutual (-5.15 percent) cautioned yesterday that H1 profit is expected to decline by more than 20 percent and it will reduce costs to mitigate the impact of Covid-19. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.22 percent) traded in the red.

Brent crude oil

The Brent oil price was quick out of the blocks yesterday, but steadied towards the end of the European trading session after American Petroleum Institute data showed US crude stocks rose more than expected, by 8.7 million barrels in the week ended May 22. At the close of local trade, benchmark Brent crude futures quoted 1.58 percent firmer at $34.68pb. Crude prices traded flat during Asian trade this morning.

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