Spot USD/ZAR has extended gains and is close to erasing yesterday's losses, as the rand underperforms all its EMEA peers while the BBDXY index has been creeping higher. The rate deals at 18.1584, 2,300 pips or ~1.3% higher on the day. Weakness in the local FI space remains evident, with SAGB yields falling across the curve. Local FRAs have edged higher today, trimming yesterday's declines.

• Political risk returns to the fore, with South Africa trying to tread a familiar diplomatic tightrope. Deputy President Mashatile revealed that the country is trying to convince Russian President Putin not to attend the upcoming BRICS summit, but Russia has so far refused to agree. Meanwhile, South African ministers are trying to persuade US officials not to revoke the sub-Saharan nation's preferential trade status.