WATCH: Rand trades firmer against the greenback
JOHANNESBURG - The South African currency plummeted last week as global risk-off mode intensified to accentuate risks ahead of the all-important Moody’s review next month according to NKC Research.
The dollar index hit a session high of 98.62 on Friday, as traders reassessed a falling global rate – earlier last week, repositioning for a more aggressive pace of US monetary policy weighed on the greenback, with a first cut for the year now seen next month. On Thursday, Moody’s warned that risks to South Africa’s budget forecasts were “elevated”, citing uncertainty surrounding the public sector wage bill, clashes with trade unions and potential contingent liabilities from parastatals. At the close of local trade, the rand quoted 0.08 percent weaker at R15.63/$, after trading in range of R15.48/$ - R15.70/$. The rand traded firmer during early Asian trade. Expected range today R15.50/$ - R15.85/$.
South African bourse
The JSE All Share (-4.50 percent) traded deep in the red, dragged by losses across the board, as coronavirus fears weighed on risk appetite. In the overall emerging market sphere, the MSCI Emerging Market Index (-2.44 percent) traded on the back foot.
Brent crude oil
The Brent oil price traded in a tight range on Friday, hovering near the key $50-level, having suffered its biggest weekly decline in four years. At the close of local trade, benchmark Brent crude futures quoted 0.12 percent weaker at $50.64pb. Crude prices traded firmer during Asian trade this morning.