Annabell Bishop, the chief economist for Investec says that the rand is remaining volatile.
The South African rand remains at risk of global financial markets, as seen with the currency slipping in early trade this Monday .
In a recent research note, ETM Analytics said that the jump in oil prices had added a new dimension to global inflation risks. Bishop said, however, that this spells bad news for risk assets as higher oil prices are typically supportive of higher inflation and interest rates. Unfortunately, the outlook for load shedding looks bleak, with analysts pointing to a likely increase in the frequency and severity of load shedding over the upcoming winter periods when demand for electricity is at an all time.
Risk has been the primary driver of rand performance this year so far. Bishop said that the erosion in the risk premium necessary on rand portfolio assets had weakened the rand materially over the past 12 months as interest rates failed to keep up with the US.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JSE cautiously firmer, while rand slipsInvestors caught off guard by Opec+ production cut, which poses new risk for global economy
Read more »
Sudan raises price of petrol, lowers price of diesel - statementSudan raises price of petrol, lowers price of diesel - statement: Sudan announced on Sunday new tariffs for fuel in what the government called its monthly review of energy prices, the Ministry of Energy and Oil said in a statement.
Read more »
Sudan raises price of petrol, lowers price of diesel - statementSudan announced on Sunday new tariffs for fuel in what the government called its monthly review of energy prices, the Ministry of Energy and Oil said in a statement.
Read more »
THE FINANCE GHOST: Price elastic ain’t fantasticPoultry and fishing companies, choking back rapidly rising input costs, are sitting ducks in this tough environment. For luxury goods firms such as Ferrari, it’s the exact opposite
Read more »