File image: IOL
File image: IOL

WATCH: Rand trades on a softer footing

By Compiled by Dhivana Rajgopaul Time of article published May 25, 2020

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JOHANNESBURG - The rand retreated as rising US-Sino tensions nipped burgeoning risk appetite in the bud according to NKC Research. 

On Friday, US President Trump warned that Washington will react “very strongly" to new Chinese legislation on Hong Kong. Fears of rising tensions between the nations boosted the greenback’s safe-haven allure. Commodity prices slumped amid rising risk aversion, while China’s failure to set a growth target for 2020 raised concerns about the Asian giant’s recovery prospects. Trading activity also died down ahead of an empty US economic calendar and reduced workday ahead of the three-day Memorial Day holiday weekend. At the close of local trade, the rand quoted 0.02 percent softer at R17.70/$, after trading in range of R17.56/$ - R17.88/$. The rand traded steady early this morning. Expected range today R17.40/$ - R17.75/$

South African bourse

The JSE All Share (-1.72 percent) ended in the red on Friday after emerging market sentiment took a hit as a result of escalating China-US tensions. In the overall emerging market sphere, the MSCI Emerging Market Index (-2.66 percent) traded lower.

Brent crue oil

The Brent oil price was rangebound on Friday after crude futures fell in Asian trading on elevated Sino-US trade tensions. At the close of local trade, benchmark Brent crude futures quoted 0.29 percent higher at $34.35pb. Crude prices traded slightly firmer during Asian trade this morning.

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