Photo: Reuters
Photo: Reuters

WATCH: Rand whipsaws following solid US jobs data

By Compiled by Dhivana Rajgopaul Time of article published Jun 8, 2020

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JOHANNEBSURG - The South African currency traded somewhat on the backfoot against the dollar during Friday’ European session according to NKC Research. 

The May US jobs report was a welcome surprise. Instead of another month of huge job losses, which was widely expected, payrolls increased by 2.5 million, which drove the dollar marginally higher. At the close of local trade, the rand quoted 0.28 percent weaker at R16.86/$, after trading in the range of R16.74/$ - R16.93/$. Having said that, the rand strengthened during Asian trade this morning, which is likely to be the trend today, thanks to an improvement in overall risk sentiment. The expected range of the rand against the dollar today is R16.60/$ - R16.95/$.

South African bourse

The JSE All Share (+2.27 percent) ended firmer on Friday, in step with most major stock indices. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.40 percent) also traded on the front foot.

Brent crude oil

The Brent oil price climbed higher on Friday after Opec+ agreed to extend supply cuts through July. Meanwhile, sentiment was lifted by solid employment figures in the US which drove equities higher across the spectrum. At the close of local trade, benchmark Brent crude futures quoted 4.35 percent firmer at $42.02pb. Brent crude oil prices traded stronger during Asian trade this morning.

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