Rand firms in early trade but threats of volatility remain

The rand fell by over 1% in early trade as the oil price and US dollar strengthened.
The rand fell by over 1% in early trade as the oil price and US dollar strengthened.
iStock

The rand gained 0.4% against the greenback in early trade on Monday, continuing on from its good showing during the second half of last week. 

The local currency opened at R15.24/$ and was changing hands at R15.17/$ at 12:09.

Last week Wednesday it threatened to break the R16.00/$ in the wake at the announcement by Stats SA that the country was in a technical recession, but firmed on Thursday and Friday on positive account deficit statistics and suggestions its rapid fall may have been overblown. 

Jameel Ahmad, global head of currency strategy & market research at FXTM, said the rand would again take its cue from how investors view emerging markets.

" ... Particular attention [will be] paid towards how the Lira reacts to the latest Turkish GDP reading and the general threat of further trade tariffs from President Trump." 

Bianca Botes of Peregrine Treasury Solutions said in a morning note that rand volatility would remain high. She said on the local front, markets would be looking at statistics for manufacturing production, business confidence, retail sales and mining production

"The current economic tone provides no indication of upbeat figures and the hope here would be not to underperform market expectations," she said.   

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
16.33
(-0.06)
ZAR/GBP
21.08
(-0.04)
ZAR/EUR
19.33
(-0.03)
ZAR/AUD
11.90
(-0.03)
ZAR/JPY
0.16
(-1.15)
Gold
1949.72
(+0.03)
Silver
26.74
(+0.09)
Platinum
928.80
(+0.44)
Brent Crude
43.52
(-0.32)
Palladium
2356.01
(+0.63)
All Share
54673.65
(-0.66)
Top 40
50399.16
(-0.59)
Financial 15
9841.32
(-2.14)
Industrial 25
72558.00
(-1.08)
Resource 10
55438.10
(+0.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1302 votes
It depends on how the funds are used.
73% - 8629 votes
No. We should have gotten the loan elsewhere.
16% - 1901 votes
Vote