EM’s trading softer
Emerging markets currencies have been under pressure during the course of the day, with global recession fears and hawkish Fed commentary weighing down risky assets. The Rand has lost 1% during the day, trading as weak as R17.30 at a stage but slightly stronger at R17.27 now. The Rand continues to trade weaker than most of its EM peers, with local headwinds keeping the Rand from playing catch-up. Equities in the US have also opened weaker, with the S&P down 0.7%, while the Dow Jones and Nasdaq are also down over 0.5%. The dollar has, however, not rebounded much against the euro and the pound, trading in narrow ranges for the most part of the day.
Global growth fears weigh down commodities
Apart from gold, metal prices have been under pressure today, with recession fears and hawkish Fed commentary playing their part. Both Platinum and Palladium are down 2%, while copper is back below $9,300. Gold has remained stable and is trading at $1,915 per Oz, with markets finding the yellow metal a safe-haven asset. Brent Crude lost ground overnight but rebounded to trade at $85.50 this afternoon.
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