Left Menu
Development News Edition

EMERGING MARKETS-South African rand leads forex gains on improving factory data

The reading was just a few points shy of a level that indicates growth in the sector. After steep losses during the onset of the coronavirus pandemic - which had seen South Africa implement strict curbs on economic and social activity - the rand has clawed back to levels last seen in March.

Reuters | Updated: 05-10-2020 14:08 IST | Created: 05-10-2020 14:03 IST
EMERGING MARKETS-South African rand leads forex gains on improving factory data
Representative image

Emerging market currencies inched up on Monday amid uncertainty over U.S. President Donald Trump's health, while South Africa's rand outperformed as factory activity neared growth territory. The rand jumped more than 0.6%, extending gains into a sixth session, as a survey of the country's private sector activity showed a softer decline in September on easing lockdown restrictions. The reading was just a few points shy of a level that indicates growth in the sector.

After steep losses during the onset of the coronavirus pandemic - which had seen South Africa implement strict curbs on economic and social activity - the rand has clawed back to levels last seen in March. But aftershocks from the pandemic continue to be felt in the economy, which was in dire straits even before the outbreak. South African stocks were a touch higher, mirroring mild gains across developing world equities. Trump's positive test for COVID-19 last week had caused some pullback in risk appetite as investors fretted over how it could affect the upcoming U.S. presidential elections.

Trump could be discharged from hospital as soon as Monday, according to his doctors, although his condition remains unclear and outside experts warn his case may be severe. "The biggest issue for the FX market is: it is uncertain whether this has made the biggest risk of the U.S. elections – a long political and legal battle about the result – any more or less likely," Ulrich Leuchtmann, head of FX and commodity research at Commerzbank wrote in a note.

Still, sentiment appeared to be improving on Monday, after better-than-expected business activity readings from the euro zone. But spiking coronavirus cases in parts of the bloc have raised concerns over a fresh batch of lockdowns.

Central European stocks and currencies rose slightly. Turkey's lira rose 0.4%, while stocks added 0.8% as consumer price inflation edged down to a lower-than-forecast 11.75% year-on-year in September, reflecting some progress in the country's bid to combat runaway inflation. But September's reading was still well above the central bank's target.

For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see For TURKISH market report, see

For RUSSIAN market report, see

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

U.S. Senate panel backs confirmation of Blinken to be top U.S. diplomat

The U.S. Senate Foreign Relations Committee on Monday approved the nomination of veteran diplomat Antony Blinken to serve as secretary of state, clearing the way for his consideration by the full Senate as soon as this week.The committee vo...

Soccer-Reaction to Chelsea's sacking of manager Frank Lampard

Reaction to the sacking of Chelsea manager Frank Lampard on MondayCHELSEA OWNER ROMAN ABRAMOVICH This was a very difficult decision for the Club, not least because I have an excellent personal relationship with Frank and I have the utmost r...

Biden extends Europe, Brazil travel restrictions, adds South Africa

U.S. President Joe Biden signed an order on Monday barring most non-U.S. citizens who have recently been in South Africa from entering the United States, effective Saturday. Bidens order also reimposes an entry ban, set to expire on Tuesday...

Judge orders Merck documents on anti-baldness drug Propecia unsealed

A U.S. judge granted a Reuters request to unseal Merck Co documents produced in lawsuits related to its anti-baldness treatment Propecia, finding that the publics right to access outweighed the drug makers arguments for keeping the informa...

Give Feedback