WATCH: Rand trades little changed overnight
JOHANNESBURG - The South African currency plunged as markets digested a wave of risk-off sentiment, amid deepening coronavirus concerns, piling into safe haven assets as Fed easing failed to soothe concerns with the unleashing of a series of urgent measures to restore normal market functioning, prevent liquidity shortages and ensure credit flow according to NKC Research.
In a surprise move, the Fed slashed the federal funds rate to the effective lower bound of 0-0.25 percent while announcing a new round of QE and emergency liquidity measures. At the close of local trade, the rand quoted 1.29 percent weaker at R16.58/$, after trading in range of R16.30/$ - R16.74/$. The rand traded little changed overnight. Expected range today R16.35/$ - R16.85/$.
South African bourse
The JSE All Share (-8.32 percent) was hammered yesterday in global risk-off trade. Losses were widespread but large financial stocks (-10.59 percent) suffered the most. In the overall emerging market sphere, the MSCI Emerging Market Index (-6.51 percent) traded deep in the red.
Brent crude oil
The Brent oil price tumbled further yesterday after the Fed’s emergency rate cut failed to boost markets while Chinese factory production fell at its quickest pace in three decades as a result of Covid-19. At the close of local trade, benchmark Brent crude futures quoted 5.50 percent lower at $30.56pb. Crude prices remained on the back foot during Asian trade this morning.
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