File Image: IOL
File Image: IOL

WATCH: Rand trades slightly stronger overnight

By Compiled by Dhivana Rajgopaul Time of article published Aug 20, 2019

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JOHANNESBURG - The South African currency traded weaker as investors steered clear of riskier EM currencies according to NKC Research. 

Idiosyncratic risks limited recovery potential while the risk of renewed escalation in US-Sino trade tensions loomed. Investor concerns surrounding Moody’s November credit risk announcement, in the wake of Eskom-related fiscal sustainability warnings by the rating agency as well as the IMF, and poor economic data will outweigh priced-in monetary stimulus from eurozone and US policymakers. At the close of local trade, the rand quoted 1.15 percent weaker at R15.41/$, after trading in range of R15.20/$ - R15.44/$. The rand traded slightly stronger overnight. Expected range today R15.30/$ - R15.50/$.

South African bourse

The JSE All Share (+0.95 percent) ended higher yesterday, in step with a broad-based recovery in global stock markets. The share price of Truworths (-0.09 percent) ended little changed, after the local clothing retailer said that it is considering closing the loss-making stores of its UK-based shoe retailer Office. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.77 percent) traded higher.

Brent crude oil

The Brent oil price experienced a choppy trading session yesterday. This weekend’s attack on a Saudi oil facility boosted prices somewhat, but Opec’s bearish outlook for the oil market for the remainder of 2019 weighed on prices. At the close of local trade, benchmark Brent crude futures quoted 0.02 percent lower at $59.25pb. Crude was flat during Asian trade.

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