The South African dollar weakened against major currencies as traders worried about the surging coronavirus cases and weak economic data. According to the statistics office, the country’s unemployment rate jumped to 30.10% in Q1 while inflation dropped to a multi-year low in April. Meanwhile, according to the health ministry, the number of coronavirus cases continued to rise even as the country continued to reopen.
Elsewhere, the US dollar index and gold rose last week as the number of coronavirus cases spiked again in countries like China, Japan, and the US. At the same time, crude oil and global stocks declined sharply as investors started to price-in the probability of more lockdowns. Wirecard, the German payment company, made headlines when it filed for insolvency after its auditors found more than $2 billion in its accounts missing. It was a shame for a company that was added to the DAX index just 2 years ago.