ZAR: Broader Market Stabilisation Lends Support To Rand

USD/ZAR loses ground for the second consecutive day amid the broader correction of recent risk-off moves. Equity dip buying has coincided with comments from BoJ Governor Uchida, who ruled out raising interest rates as long as the market is unstable, helping prop up sentiment. The yen has played a key role in the market turmoil a few days back due to its status as a popular funding currency for carry trade strategies. ZAR/JPY tumbled to 7.6011 at the beginning of the week, only to recover to 7.9841, where it sits at typing.

• When this is being written, USD/ZAR trades at 18.3655, around 1,100 pips lower on the day, with bears looking for sales through Aug 1 low of 18.1064 and towards Jun 21 low of 17.8689. On the flip side, the focus is on Monday's high of 18.6850, followed by the round figure/Jul 6 high of 19.0000/54.
• The composite BBG Commodity Index has shed 0.3%, with precious metals subindex also 0.3% worse off.
• SAGB yields are marginally lower across the curve; South Africa's 10-year breakeven inflation rate last sits at 5.83%.