Photo: Reuters
Photo: Reuters

WATCH: Rand strengthens beyond key levels overnight

By Compiled by Dhivana Rajgopaul Time of article published Mar 10, 2020

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JOHANNESBURG - The South African currency regained composure during European trade yesterday after an oil price shock caused the local unit to plummet earlier in the Asian trading session according to NKC Research. 

The weak greenback provided some reprieve for the rand, but the cataclysmic plunge in oil prices ultimately sent risk assets into a frenzy that triggered waves of short-covering and unwinding of leveraged risk positions across the board. At the close of local trade, the rand quoted 1.70 percent stronger at R15.94$, after trading in range of R15.68/$ - R15.96/$. The rand strengthened beyond key levels overnight. The expected range of the rand today is R15.80/$ - R16.20/$.

South African bourse

The JSE All Share (-6.23 percent) was hammered yesterday following the oil price shock. Losses were scattered across the board, with Sasol stock having plunged by 46.56 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (-6.34 percent) traded deep in the red.

Brent crude oil

The Brent crude oil prices stabilised at the $35 level after international oil prices crashed after Saudi Arabia signalled that it would boost crude production to gain market share in an already saturated environment. At the close of local trade, benchmark Brent crude futures quoted 9.65 percent higher at $36.47pb. The brent crude prices crept higher during Asian trade this morning. 


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