Rand breaks above R14/$ on back of load shedding, strong dollar
“The rand is trading weaker at 14.0600 as a combination of Eskom troubles, poor local retail sales data and a stronger dollar hit the rand.
“Parliament heard yesterday from Pravin Gordhan that Eskom was insolvent and needed a huge cash injection by April to stay afloat. Rolling blackouts continue and are impacting negatively on sentiment.
“Retail sales data for December released yesterday showed a contraction of 1.4% against an expected 2.5% expansion. The dollar recovered late yesterday to be trading at 1.1282 against the euro and 1.2869 against the pound.
“The euro is being impacted by poor economic data and political uncertainty in Spain. US stocks closed in the black, however, Asian stocks besides the Nikkei are softer this morning. Gold is trading lower this morning at $1 308.90 while Brent is higher at $64.03. – Brought to you by TreasuryONE