Rand benefits from softer dollar

The rand took advantage of a retreating greenback to firm on Friday, hitting new 28-month high according to NKC Research. Photographer: Nadine Hutton/Bloomberg

The rand took advantage of a retreating greenback to firm on Friday, hitting new 28-month high according to NKC Research. Photographer: Nadine Hutton/Bloomberg

Published Jun 7, 2021

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The rand took advantage of a retreating greenback to firm on Friday, hitting new 28-month high, according to NKC Research.

This came as markets were underwhelmed by the US non-farm payrolls report. That said, the US jobs recovery is nonetheless poised for an impressive run in coming months. Unprecedented fiscal stimulus and improvements in health conditions should support US GDP growth, of around 7.7 percent, in 2021 – the strongest since 1951.

At the close of local trade, the rand 1.11 percent stronger at R13.49/$, after trading in range of R13.49/$ to R13.69/$. The rand remained on the front foot overnight. The expected range of the rand against the dollar today is R13.30/$ to R13.55/$.

South African bourse

The JSE All Share (+0.05 percent) managed to eke out a slight gain on Friday, thanks to broad gains in the gold sector (+0.82 percent). In the overall emerging market sphere, the MSCI Emerging Market Index (-0.15 percent) traded softer.

Brent crude oila

The Brent oil price rose at the end of last week, briefly touching $72/pb for the first time since 2019, amid fuel demand hopes and expectations that Opec+ will stick to agreed supply restraints. At the close of local trade, benchmark Brent crude futures quoted 0.57 percent higher at $71.73pb.

BUSINESS REPORT ONLINE

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