Zimpapers Logo

The rand was on track for its first day of gains in four yesterday morning as global markets recovered from Monday’s rapid sell-off amid hopes that governments will introduce economic stimulus measures to curb the effects of Covid-19.

The local currency clawed back to below R16/$ after US president Donald Trump hinted at plans to stimulate the US economy, including a payroll tax cut.

Standard Bank currency dealer Warrick Butler said although the rand had strengthened on Tuesday due to Trump’s comments, “this is not to say the panic is over”.

The rand’s one-week implied volatility was the second highest among emerging-market currencies tracked by Bloomberg at 26,65 percent, just behind the Russian rouble at 31,11 percent.

At 10am, the rand had firmed 0,66 percent to R15,9985/$, 1,13 percent to R18,21914/€ and 0,73 percent to R20,9126/£. The euro had weakened 0,60 percent to $1,1387.

Gold was down 1,02 percent to $1,663.10/oz while platinum added 1,39 percent to $873.44. Brent crude was up 0,12 percent to $33,34 a barrel.

The rand weakened more than 3 percent on Monday after the price of Brent crude dropped 26,74 percent on Saudi Arabia’s plans to increase production output and cut its oil prices. – Reuters.