Photo: IOL
Photo: IOL

WATCH: Rand trades steady after overnight slide

By Compiled by Dhivana Rajgopaul Time of article published Jul 14, 2020

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JOHANNESBURG - The South African currency shrugged off a surprise return to a stricter phase of lockdown as robust risk appetite boosted emerging market currencies according to NKC Research. 

On Monday, S&P Global Ratings cautioned that it sees “permanent output losses for all emerging markets” with the gap relative to the pre-pandemic GDP trajectory between 6 percent - 7 percent for South Africa. That said, the rand relinquished all of the day’s gains when the greenback advanced during the New York trading session. At the close of local trade, the rand quoted 0.28 percent stronger at R16.67/$, after trading in range of R16.66/$ - R16.83/$. The local unit was steady this morning following its overnight slide. Expected range today R16.65/$ - R17.00/$.

South African bourse

The JSE All Share (+1.41 percent) recorded gains across the board as global equity markets rallied. In local news, The Foschini Group (+9.09 percent) announced that it will buy Jet assets from Edcon, which applied for bankruptcy protection in April. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.20 percent) traded stronger.

Brent crude oil

The Brent oil price traded higher yesterday in step with rising global stock markets. That said, traders remained cautious ahead of the Joint Ministerial Monitoring Committee (JMMC) of the Organisation of the Petroleum Exporting Countries (Opec), which is slated for today and tomorrow for supply cut discussions. At the close of local trade, benchmark Brent crude futures quoted 0.44 percent higher at $43.16pb. Crude prices fell during Asian trade this morning.

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