Rand Reduces Losses, Precious Metals Index Rebounds

Spot USD/ZAR has pulled back from new multi-week highs (ZAR17.4908), moving broadly in line with BBDXY gyrations. The pair last changes hands at ZAR17.4352, up ~350 pips on the session.

• Local-currency bond yield has steepened at the margin, with South Africa's 10-year breakeven inflation rate last seen at 5.89%.
• The FTSE/JSE Africa All Share Index has shed ~1.1% today, extending its move away from the record high printed last Friday.
• The aggregate BBG Commodity Index sits ~0.3% higher on the day, with the precious metals subindex last seen ~0.2% worse off, after erasing the bulk of earlier losses.
• South Africa's December trade balance came in at +ZAR5.4bn vs ZAR5.3bn expected and the downward revised +ZAR7.3bn recorded in November.
• Elsewhere, Eskom announced that it will step up rolling blackouts this week, alternating between Stages 5 & 6 in the coming days.
• The ruling ANC party called on the government to reprioritise unspent funds to address the load-shedding crisis.
• Looking ahead, President Cyril Ramaphosa is expected to convene a Cabinet meeting tomorrow, as his State of the Nation Address draws nearer.