HAVANA (Reuters) &#8211; State-run stores in Cuba began selling some food and hygiene products in U.S. dollars on Monday as the import-dependent country faces a grave shortage of tradable currency to purchase goods abroad.People wait in line to enter a store that sells products in U.S. dollars in Havana, Cuba, 



Cuba last had to open such dollar stores for basic goods in the 1990s when the fall of the Soviet Union plunged the Communist-run island into a deep economic depression.



This time it is the coronavirus pandemic, which has shuttered tourism and hit other revenue earners, worsening an existing liquidity crisis due to the implosion of ally Venezuela’s economy and the tightening of U.S. sanctions on old foe Cuba.



Lines formed in front of the stores on Monday and Cubans packed banks to obtain the bank card needed to purchase dollar goods although most residents resigned themselves to obtaining the basics in local currency.



“Not all Cubans can buy there, we don’t all have family abroad,” Lazara Rodriguez, 43, a dancer who lives near one of the stores, said.



The government said 62 stores were opening across the country with more to follow in the coming months.



Some 80 outlets selling domestic appliances, car parts and other items such as motorbikes opened late last year, and used cars went on sale for greenbacks earlier in 2020.



The Cuban state monopolizes retail and foreign trade but pandemic fallout has worsened shortages of food, medicine and other goods and there are long lines at retail outlets.



Consumers said the dollar stores provided an option amidst scarcity for some, but complained they still lacked many products.



“Its good, the prices are acceptable, but it does not have many products like detergent, oil and ham,” retiree Guillermo Antigua said, exiting a store in Havana.



Cuba is reopening with no new cases of COVID-19 reported on Monday, but private eateries with no access to wholesale markets have been finding it difficult to put together an offer.



The new stores are an option for some.



“This is good. We have options to keep working. At least they are selling us products,” cafeteria owner Daniel Gonzalez said as he packed cheese and other items into his car.



Cuba legalized the dollar after the fall of the Soviet Union but it was taken out of circulation in 2004.



Since then, there have been two currencies, the peso and the convertible peso, which is valued at 24 pesos, circulating although possession of the dollar and other tradable currencies remained legal.



Cubans who patronize the dollar stores need a dollar-denominated bank card from an account opened with tradable currencies which may be obtained through offshore remittances or other means such as exchanging local pesos on the street.Slideshow&nbsp;(3 Images)



The government claims the convertible peso is equal to the dollar, but imported goods, when available, have huge mark-ups as they are purchased in tradable currencies. The peso and convertible peso have no value abroad.



“As in the 1990s, national currencies have lost their convertibility and do not allow companies to pay debts and import inputs,” Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Universidad Javeriana Cali, said.



“To ensure that at least some sectors and markets work, they have to dollarize them.”

1280px-Comité_Central_PCC

In Cuba, the old foe’s greenback makes a comeback

JOHANNESBURG (Reuters) &#8211; South Africa’s rand plunged to an all-time low on Monday, falling below 18.00 to a dollar after ratings firm Moody’s cut the country’s last investment grade credit rating, adding to mounting panic about the coronavirus outbreak. 



At 0600 GMT the rand was 1.42% weaker at 17.9100 per dollar, pulling back slightly from the all-time low of 18.0800 it crashed to in Asian trading, indicating that the fallout of the coronavirus-led lockdown is likely to hurt local assets. 



Moody’s downgraded the rating one notch to ‘Ba1’ from ‘Baa3’ and maintained a negative outlook, meaning another downgrade could follow if the economy performs worse or government debt rises faster than expected. 



It was the last of the top three ratings firms to downgrade Africa’s most industrialised economy to sub-investment grade, following S&amp;P Global and Fitch’s downgrades in 2017. 



The latest ratings cut will see South Africa kicked out of the benchmark World Government Bond Index (WGBI) of local-currency debt, triggering up to $12 billion of forced selling, treasury and analysts estimate. 



Bonds were also weaker, with yield on the benchmark government bonds due in 2026 rising 72.5 basis points to 11.215%.



“We have previously argued that much of the downgrade has already been priced in and that we do not expect a capital exodus following the decision,” analysts at NKC Economics said in a note. 



“However, the global economic environment has changed considerably since the start of March.” 



South Africa’s confirmed coronavirus cases increased by 93 to 1,280 on Sunday and the death toll doubled to two. The country is its fourth day of a national lockdown and officials announced new measures to deal with the economic fallout. 



(Reporting by Mfuneko Toyana; Editing by Vinay Dwivedi)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21H0S6-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21H0S6-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

South Africa’s rand crashes to its lowest ever after Moody’s pulls the plug

KEY POINTS



<ul><li>The South African rand plunged over 4% against the dollar to R16.28, as it reported <a href="https://www.cnbcafrica.com/article/2020/03/07/sas-richest-province-reports-first-case-of-covid-19/">three cases</a> of covid-19 and <a href="https://www.cnbcafrica.com/coronavirus/2020/03/06/moodys-cuts-sas-growth-forecast-on-the-back-of-coronavirus/">Moody&#8217;s cut its growth forecast</a>. </li><li>The Australian dollar fell as much as 2.60% against the greenback to $0.6476, while the New Zealand dollar tumbled by as much as 2.28% to change hands at $0.6228.</li><li>The Korean won declined more than 1% against the dollar, prompting South Korea’s finance ministry to issue a verbal warning against “excessive” movements in the currency market, according to a Reuters report.</li></ul>



<a href="https://www.cnbc.com/weizhen-tan/">By Weizhen Tan</a><a rel="noreferrer noopener" href="https://twitter.com/weizent" target="_blank">@WEIZENT</a> Major Asia Pacific currencies dropped against the U.S. dollar on Monday morning, as investors took a risk-off approach with volatility across markets shooting up over an oil price war.



The&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=AUD=">Australian dollar</a>&nbsp;fell as much as 2.60% against the greenback to $0.6476, while the&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=NZD=">New Zealand dollar</a>&nbsp;tumbled by as much as 2.28% to last change hands at $0.6228.



The&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=KRW=">Korean won</a>&nbsp;declined more than 1% against the dollar, prompting&nbsp;<a href="https://www.cnbc.com/korea/">South Korea’s</a>&nbsp;finance ministry to issue a verbal warning against “excessive” movements in the currency market, according to a Reuters report.



“We’re closely monitoring speculative transactions that seems to be taking advantage of unstable market sentiment. The herd-like behavior (in the won) seems excessive short-term,” a finance ministry official told Reuters. Investors tend to regard phone messages from foreign exchange authorities as official verbal interventions in the onshore currency market, according to Reuters.



Meanwhile, investors flocked to the safe-haven&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=JPY=">Japanese yen</a>&nbsp;which soared more than 3% against the dollar to last settle at 102.10, dramatically strengthening from levels above 108 early last week.



But&nbsp;<a href="https://www.cnbc.com/japan/">Japan’s</a>&nbsp;Finance Minister Taro Aso warned against investors rapidly driving up the yen, saying the government will watch the currency spike closely, describing them as “nervous moves,” according to Reuters.



“We must watch currency and stock market moves for a while. We’ll examine&nbsp;them carefully,” Aso told reporters, according to the report. He declined to comment on whether Japan needs to intervene in the currency market.



Turmoil across markets spiked on Monday during Asia hours.&nbsp;<a href="https://www.cnbc.com/2020/03/08/oil-plummets-30percent-as-opec-deal-failure-sparks-price-war-fears.html">Oil prices plunged as much as 30%</a>, with&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@CL.1">U.S. West Texas Intermediate crude futures&nbsp;</a>briefly falling to $27.95 per barrel. It came&nbsp;after OPEC’s failure to strike a deal with its allies regarding production cuts. That caused&nbsp;<a href="https://www.cnbc.com/id/10000304">Saudi Arabia</a>&nbsp;to slash its prices as it reportedly gets set to ramp up production, leading to&nbsp;<a href="https://www.cnbc.com/2020/03/08/opec-deal-collapse-sparks-price-war-20-oil-in-2020-is-coming.html">fears of an all-out price war</a>.



Dow futures followed the same trajectory,&nbsp;<a href="https://www.cnbc.com/2020/03/09/10-year-treasury-yield-plunges.html">tumbling more than 1,000 points, with the 10-year Treasury yield dropping below 0.5%</a>&nbsp;for the first time ever as price war fears coupled with coronavirus concerns sent investors flocking to safety.



<a href="https://www.cnbc.com/2020/03/09/asia-markets-oil-prices-coronavirus-currencies-in-focus.html">Markets across Asia dived</a>&nbsp;on Monday morning.&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=.N225">Shares in Japan</a>&nbsp;plummeted more than 6%, while Hong Kong’s&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=.HSI">Hang Seng index</a>&nbsp;dropped almost 4%.&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=.KS11">South Korea’s markets</a>&nbsp;declined more than 4%.



<a href="https://www.cnbc.com/australia/">Australian</a>&nbsp;markets also tumbled nearly 6%, with energy stocks taking a beating.



— CNBC’s Pippa Stevens and Yun Li contributed to this report.



This article first appeared on CNBC <a href="https://www.cnbc.com/2020/03/09/asia-pacific-fx-australian-dollar-new-zealand-dollar-korean-won-tumble.html">https://www.cnbc.com/2020/03/09/asia-pacific-fx-australian-dollar-new-zealand-dollar-korean-won-tumble.html</a> and is republished with its permission

Currencies in South Africa, South Korea, Australia and New Zealand crumble as market volatility shoots up

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Former CEO of Dimension Data, Brett Dawson has been a busy man since leaving the company. He has invested in seven start-ups, and set up Campan. Several of these start-ups have been established by South Africans including Fourex, a forex exchange service which provides self-servicing kiosks to exchange 150 currencies. The exchange has been an innovate approach to exchanging foreign currencies into notes and coins, and is paid out in the major currencies such as the dollar, pound and euro. To discuss his investments, Brett Dawson joins CNBC Africa for more.

Brett Dawson on his Inspirational journey of investment and expansion

By Keith Wade, Chief Economist and Strategist at Schroders and Craig Botham, Senior Emerging Markets Economist.



The Chinese yuan (CNY) has fallen below 7.0 versus the US
dollar for the first time in a decade, a level which has been widely seen as a
line in the sand for the currency.



Why is the yuan falling?



The move follows President Trump’s decision to impose 10%
tariffs on $300 billion of Chinese imports last Friday. This is not a
coincidence. Rather than backing down in response to the US, China is upping
the ante.



The exchange rate had been on the agenda at the trade talks,
with China refraining from allowing the currency to weaken whilst negotiations
seemed to be making progress.



Along with the move in the CNY, China has asked its
state-owned enterprises (SOEs) to suspend purchases of agricultural imports
from the US. &nbsp;



How are markets reacting?



As in the last period of concern over the CNY in 2015,
markets have reacted adversely. Risk assets have sold off and safe havens such
as government bonds and the Japanese yen are rallying.



Back in 2015, uncertainty over the direction of China’s
currency was significant as the authorities had not communicated their change
of strategy to the markets. Today there is a clearer framework in place, and
there are other differences. For example, in 2015 firms’ currency exposures
were unhedged and unprepared for any currency weakness.



Many borrowed in external currency simply to take advantage
of the carry trade. The shock of 2015 and the greater two-way volatility since
then, reinforced by messaging from the People’s Bank of China, means that there
is less of a mismatch on corporate balance sheets.



Messaging around the weakness is also clearer today than in
2015, when the reason for the devaluation was not obvious and so was
interpreted as a sign of underlying economic weakness. In short, we would not
expect a repeat today.



China had wanted tariffs to be removed as part of any deal,
so by doing the opposite Trump was effectively delivering a rebuke. The problem
now is that both sides could get into a position where they cannot back down
without losing face. Consequently, the prospect of a deal has diminished and
the risks of escalation have risen.



What does this mean for the global outlook?



Increased trade tensions will put further downward pressure
on global activity, with investment plans likely to be delayed or cancelled and
trade suffering. China and the Asian supply chain will be most affected, but US
growth will also suffer.



Alongside a stronger US dollar, such an environment may well
lead the US Federal Reserve to cut rates faster and further. Such a move may
please the president and yet, whilst he could reverse his decision on tariffs
with a tweet, it is difficult to avoid the conclusion that he has misjudged
China’s reaction.

Op-Ed: Has Trump misjudged China ?

HARARE (Reuters) &#8211; A Zimbabwe human rights lawyer asked the High Court on Tuesday to overturn a government decision to ban the use of foreign currencies, a move that could potentially derail plans for a new currency if the court finds in his favour.



The government has introduced an interim currency, the RTGS dollar, in a bid to end a decade of dollarisation. On June 24 it renamed the new currency the Zimbabwe dollar and declared it Zimbabwe’s sole legal tender.



For many Zimbabweans, the name Zimbabwe dollar brings unpleasant memories of 2008, when the local currency was wrecked by hyperinflation of 500 billion percent, which wiped out pensions and savings and forced authorities to adopt the U.S. dollar and other foreign currencies the following year.



Godfrey Mupanga, a member of the group Zimbabwe Lawyers For Human Rights, petitioned the court to reverse the decision to ban other currencies.



In his court application seen by Reuters, Mupanga said the decision by the national treasury and central bank was “grossly unreasonable” and should be declared unconstitutional.



The court did not immediately set a date for a hearing.



In banning foreign currencies, Finance Minister Mthuli Ncube used regulations under emergency presidential powers, which lapse in six months unless parliament passes a substantive law.



Ncube told a parliamentary committee on Monday that dollarisation was throttling an economy grappling with shortages of U.S. dollars, fuel and bread, and 15-hour daily power cuts.



Many businesses had resorted to selling goods in U.S. dollars to protect them against near triple-digit inflation as the RTGS dollar was fast losing value before the government’s surprise intervention.



Reporting by MacDonald Dzirutwe

Zimbabwe challenged in court for banning the use of foreign currencies, what you need to know

NAIROBI (Reuters) &#8211; The Kenyan shilling weakened slightly against the dollar on Tuesday, driven by demand from the energy sector and merchant importers as trading resumed from Easter holiday, traders said. At 0945 GMT, commercial banks quoted the shilling at 101.45/65 per dollar, compared with 101.35/55 at Thursday’s close.



Reporting by John Ndiso; Editing by Hereward Holland

Kenya’s shilling weakens slightly against the dollar, here’s why

JOHANNESBURG (Reuters) &#8211; South Africa’s rand gained early on Monday in low-volume trade ahead of a shortened Christmas holiday week, as political instability in the United States curbed the dollar’s recent surge.



Stocks ended higher in trade led by resource firms.



At 1200 GMT the rand was 0.6 percent firmer at 14.5450 per dollar, compared to a close of 14.6300 on Friday in New York.



The dollar index was down 0.19 percent.



The rand, along with other emerging currencies, was hit by a wave of selling going before the weekend, with investors squaring positions and looking to offload risk holdings.



But by Monday risk demand was revived by developments in Washington, with investors fretting over a government shutdown that could continue into January and a report that President Donald Trump has discussed the possibility of firing the head of the central bank.



“A potential U.S. government shutdown, President Trump threatening to fire the Chairman of the Federal Reserve and U.S. politics in general are adding some pressure to the dollar,” said Bianca Botes of Peregrine Treasury Solutions.



Bonds closed flat, with the yield on the benchmark 2026 paper steady at 9 percent.



On the bourse, the Top-40 index rose 1.43 percent to 46,203 points, while the broader all-share was up 1.27 percent at 52,081.



AngloGold Ashanti led the blue-chip index, up 4.4 percent at 184.40 rand.



Bourse heavyweight Naspers rose 3.9 percent on the day to 2,956.30 rand.



Reporting by Mfuneko Toyana; Editing by Subhranshu Sahu

South Africa’s rand gains as U.S. political instability weighs on dollar

JOHANNESBURG (Reuters) &#8211; The South African rand firmed against the globally hobbled dollar early on Friday ahead of the country’s credit review announcement by ratings agency Moody’s later in the day.
The rand was 0.85 percent stronger at 14.5100 per dollar at 0650 GMT, having closed in New York at 14.6350.
The rand is expected to trade between 14.3500 and 14.7000 to the dollar on Friday, NKC African Economics wrote in a note.
Moody’s is the last of the top rating agencies to have Pretoria’s long-term foreign-currency debt in investment grade.
South Africa’s stable outlook on its credit rating means there is little chance of a downgrade, Moody’s said on Sept. 13, but a commitment to fiscal consolidation at the October budget would be key to maintaining the positive rating.
The rand was supported by the slightly-better-than-expected South African manufacturing production data for August.
Globally, the U.S. dollar traded at its lowest level this month against its major peers on Friday as declining U.S. treasury yields and further losses on Wall Street soured sentiment. [FRX/]
In fixed income, the yield on the benchmark government bond due in 2026 fell 1 basis points to 9.255 percent.
Stocks are due open firmer at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 1.10 percent.
Reporting by Nomvelo Chalumbira; Editing by Ed Stoddard

South African rand firms against US dollar ahead of country’s credit review

JOHANNESBURG (Reuters) &#8211; South Africa’s rand firmed more than one percent in early trade on Tuesday, matching gains by its emerging market peers as criticism of Federal Reserve rate hikes by U.S. President Donald Trump hurt the dollar and revived demand for some risk assets.
At 0630 GMT the rand was 1.1 percent firmer at 14.3700 per dollar, its firmest since Thursday, in what traders said was the beginning of a consolidation pattern with momentum indicators showing the unit was oversold.
The rand’s 3-day Relative Strength Index (RSI), used to identify oversold or overbought signals by comparing the current price to previous periods, dipped below the 70-mark overnight indicating a reversal of the recent bear trend.
The rand crashed to a two-year low last week as the financial crisis in Turkey rattled sentiment towards emerging markets broadly, adding to concerns about the impact of the U.S.-China trade spat on global economic growth.
But with Turkish markets closed for a religious holiday and anticipated talks between the United States and China seen lowering the temperature of the dispute, Trump’s central bank comments were the main catalyst.
In an interview with Reuters Trump said he was “not thrilled” with Federal Reserve Chairman Jerome Powell for raising interest rates, causing the greenback to slide to its lowest level since Aug. 9.
Bonds also firmed, with the yield on the benchmark 2026 paper down 3.5 basis points to 9 percent.
Stocks were set to open a touch lower at 0700 GMT, with the Johannesburg Stock Exchange’s Top-40 futures index down 0.1 percent.
Reporting by Mfuneko Toyana; Editing by Ed Stoddard

South African rand firmer as Trump comments hurt dollar, what you need to know…

JOHANNESBURG (Reuters) &#8211; South Africa’s rand slipped to six-week lows early on Friday and government bonds weakened sharply, as slides in the Russian rouble and Turkish lira combined with escalating global trade tensions to knock sentiment towards emerging market assets.
At 0637 GMT, the rand traded at 13.8125 per dollar, 0.86 percent weaker than its close on Thursday.
The currency had earlier in the session lost nearly 2 percent to 13.9500, it weakest since June 28, according to Thomson Reuters data.
At 16h31 CAT it was trading at 14.0951, weakening 2.92 per cent.
“The rand and other EM currencies on the back foot as sentiment sours,” Rand Merchant Bank analysts said in a note, adding that this was due to “geopolitical concerns and the negative impact of the U.S.-China trade spat on global growth.”
Analysts said Turkey’s lira and the Russian rouble were hit hardest in the sell-off.
Turkey’s lira hit a new record low against the U.S. dollar in early trade on Friday, as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions to the crisis. [EMRG/FRX]
U.S. President Donald Trump later on Friday said he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminium and 50 percent one on steel, as tensions mount between the two NATO allies over Ankara’s detention of an evangelical pastor and other diplomatic issues.
The rouble slid to two-year lows after Washington said it would impose fresh sanctions on Moscow.
In fixed income, the yield for South Africa’s benchmark 2026 bond was up 12 basis points to 8.805 percent.
Reporting by Olivia Kumwenda-Mtambo; Editing by Catherine Evans

Rand weakens over 2 per cent, breaches 14/dollar as emerging markets rattled

NAIROBI, June 14 (Reuters) &#8211; The Kenyan shilling and Ugandan shilling could come under pressure against the dollar, while the currencies of Tanzania and Ghana are forecast to remain stable.
KENYA 
The Kenyan shilling could weaken against the dollar in the coming week because of importer demand triggered by a favourable dollar rate, though inflows from portfolio investors are expected to provide support, traders said.
Commercial banks quoted the shilling at 100.95/101.15 per dollar, the same as last Thursday’s close.
“Improved inflows from remittances and private equity activity &#8230; I expect the importers who are holding off to come back if it strengthens, so we could see a retracement,” said one senior trader from a commercial bank.
TANZANIA 
The Tanzanian shilling is expected to trade in a tight range against the U.S. dollar in the days ahead, helped by inflows from the mining and agriculture sectors.
Commercial banks quoted the shilling at 2,275/2,280 to the dollar on Thursday, compared with 2,270/2,280 a week ago.
“The demand for dollars is more or less matched by inflows of the U.S. currency from mining companies and cotton exports,” said a trader at CRDB Bank.
GHANA 
Ghana’s cedi could hold steady next week on matching forex inflows, including central bank dollar sales to square off increasing offshore demand, analysts said.
The currency has declined steadily against the dollar since the end of April, partly because of broader weakness in emerging markets assets and a rise in the greenback. It was trading at 4.7017 by mid-morning on Thursday, against 4.7050 a week ago.
Notwithstanding a U.S. Federal Reserve interest rate increase on Wednesday and a rise in Ghana’s consumer inflation in May, the cedi is likely to hold ground against the dollar, Barclays Bank said in a market update on Thursday.
UGANDA 
The Ugandan shilling is seen depreciating over the next week, weighed down by intense demand from commercial banks and merchandise importers.
Commercial banks quoted the shilling at 3,845/3,855, weaker than last Thursday’s close of 3,815/3,825.
A trader at a leading commercial bank said that “panic and speculation” would continue to weaken the shilling, which he said is likely to touch 3,900 over the next week.
The shilling has been depreciating at an accelerated rate over the past few weeks and is now down 5.3 percent against the dollar since the start of the year.
ZAMBIA 
The kwacha is expected to hold firm against the dollar next week on increased supply of hard currency from exporters, which has outstripped demand.
Commercial banks quoted the currency of Africa’s No.2 copper producer at 9.9000 per dollar, stronger than a close of 10.060 a week ago.
“Momentum remains towards kwacha appreciation as the market remains long dollars. The kwacha depreciation over the past weeks was probably overdone and our view is that the market could be correcting itself,” the Zambian branch of South Africa’s First National Bank (FNB) said in a note.
NIGERIA 
The Nigerian naira is seen flat at about 361 per dollar next week as investors weigh the impact of monetary tightening in United States against expected returns from holding local treasuries, traders said.
Trades were thin at midday on Thursday, with demand for dollars but little supply. The naira last traded at 361.50.
It was quoted at 305.90 on the official interbank market on Thursday, supported by the central bank’s regular interventions.
Wednesday’s U.S. rate rise could trigger a sell-off in the local market as offshore investors exit naira assets. The Nigerian debt office’s latest treasury auction increased yields slightly to draw demand. (Reporting by John Ndiso, Fumbuka Ng’wanakilala, Kwasi Kpodo, Elias Biryabarema, Chijioke Ohuocha, Chris Mfula; Compiled by Maggie Fick; Editing by David Goodman)

Here’s why the Kenyan and Ugandan shilling could drop against dollar in coming week

Lukman Otunuga, Research Analyst | FXTM
Global equity bears marched into Thursday’s trading session with a mission to sow chaos across stock markets, as fears mount over a potential global trade war.
<img loading="lazy" decoding="async" class="wp-image-9513 size-full" src="http://cnbc.africa/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research.jpg" alt="JSE’s top performing stocks in March 2015" width="1365" height="1024" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research.jpg 1365w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-1024x768.jpg 1024w, https://cms.cnbcafrica.com/wp-content/uploads/2017/01/stock_exchange_board_-_aids_research-160x120.jpg 160w" sizes="(max-width: 1365px) 100vw, 1365px" />
&nbsp;
Asian stocks were mostly depressed during early trading thanks to risk aversion, and this caution could trickle down into the European markets. With Wall Street pummelled by rising fears of U.S protectionism on Wednesday, U.S stocks are at risk of extending losses this afternoon if the negative sentiment prevails. Risk aversion could become a dominant market theme moving forward, as concerns intensify over escalating trade tensions negatively impacting global growth.
Sterling supported by Dollar weakness…
The story around Sterling’s appreciation this week continues to revolve around a weakening U.S Dollar.
With investor appetite for the British Pound limited amid Brexit uncertainty, bulls are finding it increasingly difficult to keep prices buoyed. While Dollar weakness has the ability to support the GBPUSD in the near term, price action suggests some fatigue is already starting to take place, with bears lingering in the vicinity. Taking a look at the technical picture, Sterling’s appreciation has been halted on two occasions this week by the stubborn gatekeeper known as 1.4000.  Sustained weakness below this resistance level could invite a decline back towards 1.3850. Alternatively, a breakout above 1.4000 could trigger an incline towards 1.4050 and 1.4120, respectively.
<img loading="lazy" decoding="async" class="aligncenter wp-image-301850 size-full" src="http://cnbc.africa/wp-content/uploads/2018/03/Graph-1_FXTM.png" alt="" width="443" height="362" />
Commodity spotlight – WTI Oil 
WTI Crude held steady on Thursday morning, after the Energy Information Administration (EIA) reported on Wednesday that gasoline supply dropped thanks to demand jumping to a seven-month high.
While recent reports of rising demand could offer the oil price some support in the short term, soaring production from U.S Shale is likely to present many headwinds down the road. With OPEC warning that Trump’s trade policies could negatively impact oil demand, the outlook for WTI Crude remains tilted to the downside. The unsavoury combination of surging U.S Shale oil production and the threat of demand softening amid a potential trade war could spell trouble for OPEC.
From a technical standpoint, WTI Crude remains under pressure on the daily charts below $62.00. Repeated weakness below the $62.00 resistance level could open a path back towards $60.00.
Bitcoin sinks below $8,000 
Bitcoin simply failed to shield itself against an onslaught of negativity during Wednesday’s trading session, with prices eventually sinking below $8,000 on Thursday morning.
In a move that eroded investor appetite towards Bitcoin, Google announced that it will ban online advertisements promoting cryptocurrencies. The downside was fuelled by the International Monetary Fund who called for a global crackdown on cryptocurrencies. With members of Congress delivering the knockout blow on Wednesday amid scepticism around digital currency, the outlook for Bitcoin is looking increasingly gloomy.
Focusing purely on the technical picture, Bitcoin is bearish on the daily charts with $10,000 acting a solid psychological resistance level. Sustained weakness below $8,000 could open a path back towards $7,000 and $6,000, respectively.

Investors on edge as fears of trade war mount

South Africa’s rand hit a fresh three-year high against a weaker dollar in early trade on Monday, amid talk that President Cyril Ramaphosa is likely to announce a new cabinet this week.
<img loading="lazy" decoding="async" class="aligncenter wp-image-298976 size-full" src="http://cnbc.africa/wp-content/uploads/2018/02/Rands-Wikipedia.jpg" alt="" width="800" height="639" />
At 0627 GMT, the rand was at 11.5300 per dollar, 0.11 percent firmer than its New York close on Friday.
The currency hit 11.5100/dollar earlier in the session, its firmest since February 2015.
Ramaphosa has said he is considering a cabinet reshuffle after replacing former leader Jacob Zuma. The former president’s nine-year rule was marred by a series of scandals. Ramaphosa has pledged to fight official corruption.
In fixed income, the yield on the benchmark government bond due in 2026 fell 4 basis points to 7.995 percent, reflecting stronger bond prices.
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Reporting by Olivia Kumwenda-Mtambo; Editing by Biju Dwarakanath
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South Africa’s rand hits 3-yr high against dollar

Bianca Botes, Corporate Treasury Management | Peregrine Treasury Solutions
The rand opened slightly weaker this morning, trading above R11.90/$, and will struggle to find the momentum to break meaningfully below the R11.80/$ target level.
<div id="attachment_125932" style="width: 740px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-125932" class="wp-image-125932 size-full" src="http://cnbc.africa/wp-content/uploads/2017/05/Rand-shutterstock1.jpeg" alt="" width="730" height="425" />Photo: Shutterstock.</div>
Factors driving current rand levels remain mostly the same as last week, namely continued strong commodity prices and a soft US dollar.
The National Prosecuting Authority (NPA) is also forging ahead at an impressive rate in the state capture debacle, assisting in the revival of positive investor sentiment in South Africa.
Today’s ZAR weakness stems from a slight uptick in the dollar after six weeks of consecutive losses. Markets also seem to be a bit wary in anticipation of Eskom’s financial results due to be released tomorrow, which could spark further volatility.
This caution puts into perspective the dire state that South Africa still finds itself in as a result of weak economic fundamentals, despite the support that strong commodity prices and the weak dollar have offered local currency.

South African Rand will struggle to break R11.80/$

Jameel Ahmad | FXTM
As the financial markets conclude the first month of trading for 2018, the South African Rand has not only managed to hang on to its gains from the aftermath of the December 2017 ANC Conference, but generated further strength. This time, the encouraging momentum for the Rand has not been inspired by domestic headlines, but by continued weakness in the US Dollar.
<div id="attachment_125932" style="width: 740px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-125932" class="wp-image-125932 size-full" src="http://cnbc.africa/wp-content/uploads/2017/05/Rand-shutterstock1.jpeg" alt="" width="730" height="425" />Photo: Shutterstock.</div>
Despite suffering its worst year in 2017 since 2003 with losses above 9%, 2018 has seen the US currency follow a similar trend. The Dollar Index has already declined a further 3.2% year-to-date (YTD), with the Greenback weakening to its lowest level since December 2014 in the early hours of January 25. In response to the Dollar weakness, the Rand has climbed 3.85% and is seen as the fifth best performing major as of writing.
All current indications suggest that the Dollar is at threat of resuming its downfall as time progresses, representing an opportunity for the South African Rand to continue its resurgence.
Reasons for the USD fire selling are widespread; one of the most interesting aspects is increasing confidence that the global economy is catching up with the United States. Optimism over global growth has not been this high since before the global financial crisis, and there are expectations that the likes of the European Central Bank (ECB) and Bank of Japan (BoJ) could be about to follow in the footsteps of the Federal Reserve by beginning the process to normalize monetary policy. Although policy normalization in the developed world was previously thought to be a risk for the emerging markets it is actually working in the favour of emerging market currencies so far – weakening the ‘pull’ factor for the Dollar when other developed currencies like the Euro or Japanese Yen potentially offer yield that has not yet been priced into the market.
Another factor that appears to be supporting the prolonged bearish sentiment in the US Dollar is the fear of President Trump stepping up his protectionist narrative. The pledge to put “America first, and always” is seen as an unknown risk for a global economy that has not looked as positive since the global financial crisis, and could now threaten investor confidence in the US Dollar even further.
The weakening Dollar will play into the hands of the US President, who has in the past been explicit in his comments that the USD is “too strong”. It also represents an opportunity for many different currencies around the globe to strengthen to levels not seen since the days of the Federal Reserve signaling to the financial markets that it was preparing to eventually raise US interest rates, something that stretches all the way back to the USD strength that began late 2014.

Rand benefits from ongoing acceleration in Dollar selling

Jameel Ahmad|FXTM
On first impressions, it certainly seems like the South African Rand has commenced the new trading year on the front foot. The local currency is currently trading around the 12.50 region, a significant distance away from the 2017 low when the Rand weakened to 14.50 before December’s ANC conference. So, the question on the minds of many is, what could 2018 have in store for the South African Rand?
<img loading="lazy" decoding="async" class="aligncenter wp-image-126652 size-full" src="http://cnbc.africa/wp-content/uploads/2017/06/shutterstock_254320597_ZAR_scatter.jpg" alt="" width="4500" height="2429" />
As we have come to expect with the South African Rand in recent years, volatility is unlikely to go away. There are a few reasons to be positive on the Rand, including an apparent continuation of weak appetite towards the US Dollar. In 2017, the Dollar Index suffered its worst year since 2003, with losses above 9%, and the current sentiment suggests its fortunes are unlikely to turn the corner. The Dollar has, for the most part, started 2018 the same way that it traded for the majority of 2017, on negative ground. This is a significant positive for the Rand, even without recent developments in South Africa. It should also be noted that the continued rally in the Dollar over the years prior to 2017 put pressure on an overwhelming number of different global currencies, not just the Rand.
When it comes to South Africa, I don’t think we can expect a further acceleration of Rand purchasing following the aftermath of the ANC conference. While the likely Presidential change after the next election has been priced in by investors as positive, there is still a long way to go until the next elections. Upbeat sentiment around Cyril Ramaphosa could be something that will improve macro-economic factors in South Africa, including business and consumer confidence, although this won’t necessarily have a heavy influence in Rand fluctuations over the short run. The reports from the week commencing 8 January that President Zuma would step down have not yet been validated, suggesting that any potential increase in Rand purchasing following the next election may not take place until the event draws closer.
My concern for the South African Rand post ANC conference is that the accelerated purchasing might be a little too much, too soon. When a currency shifts by such momentum under such a short period of time, questions of investor profit-taking can surface. This is something potential Rand traders will likely monitor. Another potential negative for the Rand is that the current macro outlook does not warrant investors taking in further purchasing positions on the Rand at current levels.
Risk appetite is the main concern that could potentially provide the Rand with negative momentum over the coming months. It’s no secret that major equity markets printed all-time highs on a variety of occasions throughout 2017, but there is a question mark over whether this momentum can be maintained in 2018.  If there is a round of serious profit-taking on the equity markets, this is likely to lead to risk aversion across the global markets and any drastic weakness in risk appetite will damage appeal to higher-yielding currencies, like the Rand.

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