Rand firms as global markets recover a little
The rand strengthened against major global currencies on Friday morning, although volatility remains high, as investors consider the coronavirus pandemic and oil dispute between Russia and Saudi Arabia.
The volatility index, which measures panic in the market, reached a record high last night, Peregrine Treasury Solutions treasury partner Bianca Botes said in a note.
This demonstrates just how pessimistic markets are about the ability to control the Covid-19 outbreak, as the infection spreads and death toll rapidly rises across the globe, she said.
At 11.29am, the rand had firmed 1.79% to R16.2298/$, 1.64% to R18.1453/€ and 1.61% to R20.4510/£. The euro was up 0.11% to $1.1181.
The rand has been under immense pressure this week as the global sell-off reached its worst level on Thursday. It has now lost 15% of its value against the dollar so far in 2020.
Investors are considering fiscal and monetary responses by global policymakers, amid fears the coronavirus will significantly damage economic growth in 2020.
Source: businesslive.co.za
