WATCH: Rand slumps to a record low against the greenback

JOHANNESBURG - The South African currency slumped to a record low against the greenback during early trade before an external wave of stimulus reprieve lifted the local unit somewhat in tandem with other risk currencies according to NKC Research.

The local unit stormed past the R18/$ barrier early on Monday after Moody’s pulled the trigger on a downgrade action to junk status late on Friday. The rand however clawed back most losses as risk aversion ebbed in the wake of China’s decision to slash the interest rate charged on seven-day reverse repo agreements from 2.4 percent to 2.2 percent – the largest margin since 2015. At the close of local trade, the rand quoted 0.25 percent weaker at R17.94/$, after trading in range of R17.78/$ - R18.07/$. Expected range today R17.70/$ - R18.20/$.

South African bourse

The JSE All Share (+1.09 percent) ended higher yesterday, in step with better-performing international stock markets. In local news, large names in the platinum industry; including Anglo American Platinum (-1.32 percent), Impala Platinum (-0.22 percent) and Sibanye Stillwater (+0.97 percent) have declared force majeure on contracts due to the national lockdown. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.25 percent) traded lower.

Brent crude oil

The Brent oil price tanked yesterday, due to mounting concerns of an elongated global economic slump. At the close of local trade, benchmark Brent crude futures quoted 6.01 percent lower at $22.20pb. Crude prices traded marginally stronger during Asian trade this morning.