The rand traded stronger during Monday’s European session, although EM currencies in general were muted as a slew of lacklustre PMI readings weighed on sentiment, according to NKC Research.
Trading conditions were thinner than usual as the US markets were closed for Independence Day celebrations. Our nowcasting tracker points towards a very bleak near-term outlook, as the country is in a third wave of Covid-19 infections, which includes a more contagious mutation called the Delta variant.
The containment measures announced on June 27 will hamper mobility and economic activity and pose a real threat to the South Africa’s economic recovery progress. The announced measures will have a considerable impact on economic activity.
At the close of local trade, the rand quoted 0.11 percent stronger, at R14.24/$, after trading in range of R14.21/$ to R14.31/$. The rand traded firmer overnight. The expected range of the rand against the dollar today today is R14.10/$ to R14.40/$.
The JSE All Share (-0.24 percent) ended lower yesterday, as Naspers (-6.07 percent) declined after Chinese tech giant Tencent’s share price closed weaker. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.07 percent) traded lower.
Brent crude oil
The Brent oil price traded higher yesterday as Opec+ members attempt to navigate their way after the UAE resisted an eight-month extension to output cuts. At the close of local trade, benchmark Brent crude futures quoted 0.43 percent higher, at $76.7pb. Crude prices traded higher during Asian trade this morning.