Rand weakens in cautious afternoon trade
The dollar remains slightly buoyant, but analysts expect subdued trade ahead of a holiday weekend in the US
The rand remained on the defensive on Friday afternoon, with global markets expected to be somewhat subdued due to a long weekend in the US.Investors are also expected to be cautious ahead of S&P Global Ratings’ latest assessments of SA’s creditworthiness, with the announcement expected at about midnight local time.International data failed to give the market much direction, and therefore any moves in foreign exchange rates were likely to be due to equity flows, said BK Asset Management MD Boris Schlossberg.The dollar found some support from signs that North Korea and the US would continue to engage over the former’s nuclear programme.Local bonds held up well despite the weaker rand, possibly bolstered by a 2.5% fall in the price of Brent crude, which has put reduced fears over rising inflation. Higher inflation tends to weaken bonds.Brent crude fell after reports that both Russia and oil-cartel Opec would consider loosening production cuts in their June meeting.At 3pm, the rand was...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.