JOHANNESBURG - The rand surrendered all of the previous session’s gains when it dipped back to near multi-month lows during the European session as flashing recession warning signals in advanced economies and weak China data spurred a renewed risk aversion according to NKC Research.
The local unit was steady during early trade, ahead of the retail sales release, before risk-off sentiment sent safe havens on a renewed rally as the inversion of the US debt curve rang recession warning bells. Over the short term, we expect the trade-weighted dollar to advance, leaving counter-currencies including the rand vulnerable. At the close of local trade, the rand quoted 1.8 percent weaker at R15.41/$, after trading in range of R15.12/$ - R15.42/$. Expected range today R15.30/$ - R15.60/$.
South African bourse