JOHANNESBURG - The South African currency capitulated to bearish pressure as recession signals across the globe and fears regarding an escalating trade war sent investors to trim risk exposure according to NKC Research.
The local unit escaped the brunt of weakening risk sentiment, although fears linger that more fiscal resources need to be injected into struggling parastatal Eskom. The National Treasury’s policy document dispelled any hopes of a quick resolution to the country’s deepening woes, which will weigh on Moody’s decision come November. At the close of local trade, the rand quoted 0.28 percent weaker at R15.36/$, after trading in range of R15.26/$ - R15.41/$. The rand traded on the backfoot throughout the overnight session. Expected range today R15.30/$ - R15.60/$.
South African bourse