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Rand Falters As Gold Bid Fades

ZAR

Spot USD/ZAR is edging higher in the wake of yesterday's sell-off, the pair last changes hands +710 pips at ZAR18.1180. From a technical standpoint, gains past Apr 10 high of ZAR18.5386 would support the bullish case, while bears look for a retreat towards Mar 31 low of ZAR17.6993.

  • The BBG precious metals index has corrected yesterday's upswing, shedding ~0.2% this morning, as gold has slipped into negative territory.
  • Local-currency bond yields are 4.9-6.9bp higher across the curve, with South Africa's 10-year breakeven inflation rate last seen at 6.34%.
  • The FTSE/JSE Africa All Share Index creeps higher and last operates ~0.5% above neutral levels.
  • Eskom continues to implement Stage 6 load-shedding until further notice amid continued shortage of generation capacity.

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