WATCH: Rand strengthens overnight
JOHANNESBURG - The rand experienced a volatile session as it trotted along the path of souring risk sentiment, hitting a one-month low in early European trade, to add insult to injury departed by the IMF’s growth outlook cuts and the announcement that cash-strapped national carrier South African Airways cancelled flights according to NKC Research.
Risk aversion swept across the board as the coronavirus outbreak in China stoked concerns. This came against the backdrop of domestic woes, which will keep growth suppressed throughout the medium term. However, a weak performance by the USD opened a window for the rand to claw back losses. At the close of local trade, the rand quoted 0.38 percent firmer at R14.48/$, after trading in range of R14.45/$ - R14.60/$. The rand strengthened overnight. Expected range today R14.35/$ - R14.55/$.
South African bourse
The JSE All Share (-1.49 percent) joined a global sell-off yesterday amid heightened concerns about a spreading Chinese virus. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.64 percent) traded sharply weaker.
Brent crude oil
The Brent oil price regained after its initial fall yesterday morning. Expectations that the market will remain well supplied are dousing production concerns. At the close of local trade, benchmark Brent crude futures quoted 0.12 percent higher at $64.76pb. Crude prices dipped lower during Asian trade this morning.
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