ZAR: Rand Extends Gains, Awaits Fresh Catalysts

USD/ZAR continues to grind lower amid stable performance from the main gauges of greenback strength. The pair last deals at 18.0730, just over 400 pips below neutral levels. A dip through Jun 21 low of 17.8689 would confirm that bears have the upper hand. On the flip side, bulls look for a rebound towards Jul 2 high of 18.6627.

• Cold weather and electricity theft forced Eskom to implement "load reduction," which the utility stressed was not tantamount to a resumption of loadshedding. As the utility explained, "load reduction is a long-established process that Eskom uses in specific areas when there is sufficient electricity available, but a transformer’s integrity is at risk due to overloading, whereas loadshedding is used when the national grid is constrained and there is not sufficient capacity to generate electricity to meet demand."
• SAGB yields sit a touch lower on the session, with 5-year & 10-year breakeven rates close to unchanged levels after recently printing their worst levels since early 2023.
• The composite BBG Commodity Index is barely changed; the precious metals subindex is up 0.4% on the day.