Rand Remains Vulnerable, Focus On Energy Situation & Scheduled S&P Credit-Rating Review

USD/ZAR ticks higher as the greenback (BBDXY index) ticks away from worst levels, while the rand remains exposed to familiar risks. The rate now sits at ZAR19.4148, up 820 pips on the session, with bulls looking to attack May 12 all-time high of ZAR19.5148.

• The local energy situation remains front and centre, with market participants assessing the latest developments. Minister in the Presidency Khumbudzo Ntshavheni this morning told parliament that a worsening power crisis raises security risks by making the society "susceptible to mobilisation against the government by elements with nefarious agendas." Separately, it has been confirmed that South Africa granted mooring rights to ship-mounted power stations operated by Turkey's Karpowership in a bid to boost generation capacity.
• S&P are scheduled to provide an update on South Africa's sovereign credit rating after hours today. Any news on that front will be closely watched, as a negative change would add to the well-documented mix of headwinds for South African assets. Worth noting that in March the agency deviated from its schedule and unexpectedly revised the nation's credit-rating outlook to stable from positive, while affirming the rating at BB-. According to the S&P schedule, the first South Africa credit-rating action had originally been slated for today.