Rand rises despite the resumption of load-shedding
The rand juggled cautious sentiment as coronavirus infections are surging across the globe and frustration hit as South African power utility Eskom switched off the lights against a soft US PPI release according to NKC Research.
Embattled power parastatal Eskom announced the abrupt start of stage-2 load shedding on Friday as generation unit breakdowns accelerated.
During a thin US calendar, the decline in producer prices underscores that price pressures in the broader economy remain extremely tame and reinforces the Fed's strong dovish posture.
US producer prices fell 0.2% m-o-m in June, a weaker-than-expected outcome as higher energy prices were offset by lower services prices.
At close of local trade, the rand quoted 1.08% stronger at R16.75/$, after trading in range of R16.75/$ - R16.97/$.
The rand wobbled in response to President Cyril Ramaphosa’s speech last night. Expected range today R16.65/$ - R16.90/$.