Rand Loses Shine Amid Commodity Weakness

USD/ZAR has clawed back some of yesterday's losses, swinging back to a weekly gain, as the risk-off impetus weighs on commodity-tied currencies. The rate operates ~930 pips higher, last at ZAR18.1270. From a technical standpoint, bulls look for a rally above Mar 21 high of ZAR18.6132 and towards Mar 8 high of ZAR18.7192. Conversely, bears see Mar 31 low of ZAR17.6993 as their initial target.

• The composite BBG Commodity Index trades ~0.4% lower on the day, testing its 50-DMA, with the precious metals subindex sitting ~1.0% below neutral levels. Gold sits ~$18.0/oz. lower on the session. South African miner shares have also faltered.
• Local-currency bonds are slightly weaker, albeit they have recovered the bulk of initial losses. South Africa's 10-year breakeven inflation rate sits at 6.38%.
• The ANC's National Executive Committee will meet over the weekend, with the energy crisis set to dominate the agenda. Party officials are expected to discuss how to empower the newly created Electricity Ministry to allow it to address the ongoing energy crisis.