Rand enters second day of gains as global mood improves
Rand Merchant Bank analyst Siobhan Redford warns there is ‘ever-present risk’ of local currency breaching R15 if load-shedding intensifies
The rand entered its second day of gains on Monday morning, as investors shrugged off the rapid spread of the coronavirus.
The hope that China will use stimulus measures to counter the effect of the virus has lifted market sentiment. The virus has claimed more than 1,700 lives in mainland China and more than 70,000 people had been infected by Monday amid the worry that the virus may have an effect on the global economy.
Rand Merchant Bank analyst Siobhan Redford said the rand could remain at the R14.90/$ level on Monday, “with the ever-present risk of breaching R15 in the event that load-shedding intensifies”.
Eskom said on Monday that there is no planned load-shedding for the day but there is a risk of it occurring during the week.
At 10.30am, the rand had firmed 0.13% to R14.8769/$, while it was little changed at R16.1254/€ and R19.4032/£. The euro was flat $1.0839.
Gold was down 0.31% to $1,578.89/oz and platinum was up 0.77% to $967.88. Brent crude was flat at $57.38.