Rand loses traction as risk-off mood dominates

THE rand slipped as market activity on Tuesday was dominated by a strong risk-off mood after traders took note of Afghanistan-centred geopolitical risks, soft Chinese activity and tighter regulation set out in draft documents in Beijing, according to NKC Research.

In turn, the euro skidded weaker as an array of risk factors spurred a flight to safety, enabling the greenback to advance for a second session, despite weaker-than-expected retail sales data.

At the close of local trade, the rand was 0.6 percent weaker at R14.97 to the dollar, after trading in range of R14.79 to R14.99. The rand traded firmer overnight. The expected range of the rand against the dollar today is R14.70 to R15.

South African bourse

The FTSE/JSE All Share Index closed 0.2 percent higher yesterday. Momentum Metropolitan (-1.6 percent) said that for the year to the end of June, the company expect headline earnings to decline by between 50 and 70 percent because of a surge in death claims. In the overall emerging-market sphere, the MSCI Emerging Market Index traded -1.3 percent lower.

Brent crude oil

Demand for crude oil remains in a slump, and Opec reportedly confirmed that it would not answer the US’s call for more supply, because the market would not need more oil than the planned production for the coming months. At the close of local trade, benchmark Brent crude futures were 0.6 percent higher at $69.80 per barrel. Crude prices traded sideways during Asian trade this morning.

BUSINESS REPORT ONLINE