Photo: IOL
Photo: IOL

WATCH: Rand runs out of steam

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

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JOHANNESBURG - The rand lost some positive momentum during Friday’s European session, offsetting most of the gains made on Thursday according to NKC Research. 

On domestic soil, Moody’s said it is unlikely the government will reach its target to stabilise debt by 2023. This follows Finance Minister Tito Mboweni’s emergency budget reading on Wednesday in which he put forward Treasury’s ambitious intentions to cut spending in coming years in order to contain a concerning public debt trajectory. In turn, the latest figures coming out of the US show that consumer spending rose by 8.2 percent in May following a 12.6 percent collapse in April. This growth rate was slightly lower than expectations according to the Reuters poll, which suggested a 9.0 percent growth rate. At the close of local trade, the rand quoted 1.18 percent weaker at R17.33/$, after trading in range of R17.11/$ - R17.33/$. Expected range today R17.10/$ - R17.50/$.

South African bourse

The JSE All Share (-0.49 percent) ended in the red last week, with losses widespread. In local news, Sasol (-3.96 percent) has appointed Nedbank (-4.25 percent) to help sell the local petrochemicals producer’s 50 percent in Republic of Mozambique Pipeline Company, Reuters reported on Friday. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.55 percent) traded weaker.

Brent crude oil

Rising coronavirus infections in the US weighed on the Brent oil price during Friday’s trading session. A delay to US states reopening are hurting demand for crude. At the close of local trade, benchmark Brent crude futures quoted 0.27 percent softer at $40.67pb. Crude prices sank further during Asian trade this morning.

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