Rand softer after news of Eskom bail-out
The local currency lost ground at the weekend after news the utility would receive a R17bn bail-out, but the unit is flat on Tuesday morning
The rand weakened against major global currencies during the Easter long weekend, and had extended losses slightly on Tuesday morning as investors watched for fresh catalysts.
News that Eskom had received a R17bn bail-out on Friday has put the local currency on the back foot, again raising questions about whether SA will be able to hold on to its investment-grade sovereign credit rating.
Eskom continued to weigh on the rand, while emerging markets are again feeling the pinch as the US-Iran oil debacle strains sentiment, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes.
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Reports have suggested that the US will end exemptions granted to various countries buying Iranian oil. The news sent the oil price to 2019 highs.
At 9.30am the rand was down 0.11% to R14.1771/$ and 0.2% to R18.4169/£, but was flat at R15.9461/€. The euro was little changed at $1.1248.
The benchmark R186 government bond was bid at 8.535% from 8.45%.
There are a few major local releases this week to give markets direction. On Tuesday, Statistics SA is due to report tourist accommodation; land transport data for February; food and beverages numbers for February; and liquidations and insolvencies data for March.
Global focus is on US corporate earnings season, with more than 100 companies set to release their results this week.