Rand Falters Amid Renewed S.Africa/Russia Controversy

USD/ZAR refreshed record highs at ZAR19.8672 as South Africa's diplomatic troubles returned to the fore. The rate last deals at ZAR19.8050, up ~1,380 pips on the session, with bulls looking for a rally above the psychological ZAR20.00 figure. Bears keep an eye on May 16 low of ZAR18.9945, followed by May 2 high of ZAR18.5075.

• The DIRCO granted diplomatic immunity to all officials attending BRICS events hosted by South Africa as local officials debate legal options for Russian President Vladimir Putin's visit to the sub-Saharan nation. The issue is expected to be raised during Russian Foreign Minister Sergei Lavrov's trip to South Africa this week. Meanwhile, the SARB warned of dire consequences of indirect or secondary sanctions, which could potentially be imposed on South Africa over its stance on the war in Ukraine.
• The commodity complex has softened, with the aggregate BBG Commodity Index down ~0.8% on the day. The precious metals subindex sits ~0.2% below neutral levels.
• Local-currency bond yields have crept higher across the curve, with 10-year breakeven inflation rate rising to 7.31%.
• South Africa's M3 money supply grew 10.14% Y/Y in April versus +8.60% expected. Monthly budget balance for April will be released at 13:00BST/14:00CEST, with economists expecting a ZAR67.0bn deficit.