The rand fell on Wednesday after a surprise interest rate cut by the country’s central bank, while broader emerging market risk assets retreated amid continued focus on the coronavirus outbreak. The rand weakened about 1.5 percent to the dollar after South Africa’s central bank delivered a surprise 100 basis point rate cut on Tuesday to cushion the economy from the outbreak.
The bank also signalled more action to support the economy, which it now sees shrinking by about 6 percent in 2020 due to added disruptions from the virus. South African stocks fell 2.8 percent.
Broader emerging markets were also on the backfoot, with the MSCI’s stock index shedding about 0.5 percent, while currencies fell 0.2 percent. Investors were cautiously looking to the possible opening up of major economies, given that virus cases were seen peaking in the United States and Europe.
However, the pandemic’s economic impact is expected to run rampant, with the International Monetary Fund now expecting the global economy to mark its steepest downturn since the Great Depression of the 1930’s.
In other news – Shauwn Mkhize considers selling bananas during the lockdown
Businesswoman and reality star Shauwn Mkhize has taken to social media to ask her fans for their opinions on a possible new business venture. Mkhize, who recently celebrated her birthday in lockdown, is well known for her work in construction, but due to the national lockdown, she has not been able to “build houses” and is therefore considering selling bananas instead. Read more
Source: eNCA
