Photo: IOL
Photo: IOL

WATCH: Rand slips amidst cautious trade

By Compiled by Dhivana Rajgopaul Time of article published Jun 1, 2020

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JOHANNESBURG - The South African currency slipped amid cautious trade as investors await more guidance on the United States' response to China’s tightening control over Hong Kong according to NKC Research. 

Uncertainty still reigned as South Africa prepares to enter the next phase of a phased reopening strategy although some Covid-19 hot-spots might be required to maintain more stringent restrictions on movement. At the close of local trade, the rand quoted 1.07 percent weaker at R17.62/$, after trading in the range of R17.42/$ - R17.66/$. The rand traded firmer early this morning as emerging market sentiment benefited from an improvement in China’s May factory activity. The expected range of the rand against the dollar today is R17.25/$ - R17.60/$.

South African bourse

The JSE All Share (-1.76 percent) ended in the red on Friday, dragged by losses across the board, amid global risk-off trade. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.54 percent) bucked the trend to trade on a firmer footing.

Brent crude oil

The Brent oil price fell on Friday despite posting a sizeable monthly gain. Weak United States fuel demand and souring China-US relations weighed crude prices down. At the close of local trade, benchmark Brent crude futures quoted 0.60 percent lower at $34.73pb. Crude prices struggled to gain traction during Asian trade this morning. 

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