Photo: File
Photo: File

WATCH: Rand runs out of momentum

By Compiled by Dhivana Rajgopaul Time of article published Jul 6, 2020

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JOHANNESBURG - The rand started the session on a firmer footing, buoyed by external factors, before sliding later during the session as risk aversion rose amid thin trade according to NKC Research

With the United States celebrating Independence Day, trading volumes dipped on Friday. Concerns surrounding rising infections – and renewed outbreaks after Fourth of July celebrations – and an associated reversal of phased reopening clipped risk appetite later during the session, supporting the greenback. On local soil, weak data releases last week painted a sombre picture of the South African economy, which was struggling before Covid-19 hit. At the close of local trade, the rand quoted 0.50 percent weaker at R17.05/$. The rand surged stronger during Asian trading this morning driven by improved risk sentiment. Expected range today R16.85/$ - R17.00/$.

South African bourse

The JSE All Share (-0.17 percent) ended lower on Friday as virus concerns weighed on investor sentiment. Losses in the financial and mining sectors outweighed gains in large tech stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.94 percent) traded firmer.

Brent crude oil

The Brent oil price traded weaker on Friday after breaching $43pb the session before. Concerns about future fuel demand weighed on crude prices. At the close of local trade, benchmark Brent crude futures quoted 0.09 percent lower at $42.62pb. Crude prices traded on the front foot during Asian trade this morning.


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