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Markets WRAP: Rand closes at R14.43/$

2019-03-08 09:13

Tthe rand closed at R14.43/$ on Friday after a rocky Thursday.


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Last Updated at 18:03
08 Mar 17:02

Following a day that senior currency dealer at TreasuryONE, Andre Botha, called "jittery" and "eventful" on Thursday, the rand closed at 14.4272/$ on Friday.

Here's how Friday closed:  

USDZAR              14.4272

EURUSD              1.1225

EURZAR              16.1865

GBPUSD              1.3057

GBPZAR              18.8282

AUDZAR              10.1502

CADZAR              10.7436

CNYZAR               2.1445

ZARJPY                7.6944

CHFZAR             14.2970

R186 8.66%

US 10 Year 2.64%

JSE -0.72%

FTSE -0.94%

S&P 500 -0.84%

Brought to you by TreasuryONE  

08 Mar 16:16

US non-farm payroll number way off estimate; Rand barely reacts

The US non-farm payroll number prints at 20 000 jobs that were created in February, missing the estimated number of 180 000.

The unemployment rate falls to 3.8%.

The Rand has hardly reacted to the number and is trading at R14.5200.

Brought to you by TreasuryONE.

08 Mar 16:14

Zimbabwe plans Monetary Policy Committee, benchmark rate

Zimbabwe plans to establish a monetary policy committee and set a benchmark interest rate as it tries to stabilise an economy that has all but collapsed and build confidence in its own newly launched currency.

The country will also put in place an inflation-targeting regime, George Guvamatanga, permanent secretary in the Zimbabwe Ministry of Finance, said by text message on Friday.

“There will be a return to a full monetary policy framework,” he said, without giving timing.The reforms would be the latest implemented to try and quell an economic crisis that’s pushed the inflation rate to its highest since 2008, when price growth reached an estimated 500 billion percent.

That led Zimbabwe to abandon its own currency in favor of the dollar in 2009. - Bloomberg

08 Mar 12:25

'Havoc' for rand Thursday after plans to nationalise Reserve Bank

President Cyril Ramaphosa's announcement on Thursday that government intends to continue with plans to nationalise the central bank cased "havoc" in dealing rooms, according to Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions.

The rand opened at R14.50 to the greenback on Friday morning, after losing 1% on Thursday.

It weakened to 0.25% to trade at R14.54/$ by 10:10. By noon it was again trading level at R14.50/$. 

08 Mar 11:38

Drugmaker's share's plunge


Aspen Pharmacare Holdings shares plunged to a seven-year low on Friday as an already protracted deal to sell its infant-formula business dragged out even further, choking off cash flows and weighing on financing costs.

The group's shares were down 51% at R69.17 a share on Friday at 11:22.

By 11:45 they had recovered somewhat to trade 43% down.

At noon they were changing hands at R90.37 a share, down 35.98%. 

Africa’s biggest drugmaker announced the €740m euro deal with French cheese maker Lactalis International in September, but completion of the sale has become mired in regulatory scrutiny. Investors had already been disappointed with the price, and Aspen shares have more than halved since the sale was disclosed.

08 Mar 11:34

Rand weakens further as Ramaphosa commits to nationalising Reserve Bank

President Cyril Ramaphosa's announcement that government intends to continue with plans to nationalise the central bank cased 'havoc' in dealing rooms on Thursday, says Bianca Botes of Peregrine Treasury Solutions.

08 Mar 10:37

Tokyo closes down 2% - AFP 

Tokyo stocks closed lower for the fourth straight day on Friday as risk aversion grew after weak Chinese trade data fuelled worries over the global economy.

The Nikkei 225 index lost 2.01%, or 430.45 points, to 21 025.56.

Over the week, the benchmark index tumbled 2.67%. The broader Topix index fell 1.82%, or 29.22 points, to 1 572.44, down 2.68% from the week before.

The Tokyo market got off to a weak start on investor worries after the European Central Bank slashed its 2019 eurozone growth and inflation forecasts.

Japanese shares "failed to stem the trend of falls in the US market on concerns over the global economic outlook", Kentaro Yahashi, strategist at Daiwa Securities, said in an online commentary.

08 Mar 09:45

Global stock slide extends amid growth worries

Adam Haigh, Bloomberg 

Stocks in Asia fell with US and European futures amid renewed concerns about global growth and signs China is trying to slow down the country’s equity rally.

The yen climbed amid the risk-off sentiment.Equities from Sydney to Hong Kong retreated and Chinese shares slumped most this year as traders took a rare sell rating from the nation’s largest brokerage as a sign the government wants to curb gains.

Weak Chinese trade data only added to the negativity.

Treasury yields dipped and the euro remained near the lowest since 2017 after the European Central Bank slashed its growth forecasts Thursday.

The dollar drifted after seven days of gains and gold ticked higher. The US jobs report on Friday will provide the next clues on the health of global growth after ECB President Mario Draghi delivered fresh stimulus as he downgraded the outlook for the region’s economy.

The move came during a week that’s seen China cut its goal for economic expansion, the Bank of Canada dial back its expectations for policy tightening and the Organisation for Economic Co-operation and Development lowering its global outlook.

China’s exports in February declined more than 20% from a year earlier and imports also weakened due to the Chinese New Year shutdown and continued uncertainty from the trade war, data from the nation’s customs administration showed Friday.

“All these different variables are beginning to come together to paint a more dismal outlook for global growth,” Lindsey Piegza, chief economist at Stifel Nicolaus & Co., told Bloomberg TV from Minneapolis. “We saw the ECB wake up to the acknowledgment of a weaker growth and inflation profile in Europe, but this is sending a broad-based signal that contagion may be coming to the U.S.”

Elsewhere, the pound was steady after the European Union was said to make a new offer to the UK in an attempt to break the Brexit impasse. Oil slipped toward $56 a barrel in New York.

08 Mar 09:13

Euro falls 

By TreasuryONE.

"The euro fell to its lowest levels of the year against the dollar, the yield on German 10-year Bunds fell to its lowest since 2016 and equity markets across the board is under pressure.

This is all on the back of the dovish ECB (European Central Bank), by not only cutting its 2019 growth forecast for the euro zone to 1.1% from an earlier 1.7%, it also unveiled a new round of low-cost loans to banks and pushed back the timeline for what would be its first interest rate hike in nearly a decade. 

The USD has been the biggest gainer, as the market flooded back to greenback. Looking at the graph above one can see that all emerging markets being under pressure with the USDZAR (pink) being one of the worst hit.

We need to ask where to from here? Well if the major currencies remain under pressure, especially the EUR/USD which is starting to break lower through key technical levels, we might just see EM currencies remain under the pump for little while longer."

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