Photo: File
Photo: File

Rand edges higher against the dollar

Time of article published Oct 20, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency continued to benefit from external factors, with attractive carry underpinning rand strength despite a brittle economic backdrop according to NKC Research.

Global risk appetite supported the local unit for another session on Monday, as hopes for US fiscal stimulus, favourable data out of China and optimism surrounding a Covid-19 vaccine outweighed US election concerns. China GDP disappointed somewhat, expanding 4.9 percent y-o-y and 3.0 percent q-o-q in Q3, although still up from the 3.2 percent y-o-y print for Q2.

At the close of local trade, the rand quoted 0.33 percent stronger at R16.46/$, after trading in range of R16.42/$ - R16.55/$. The rand traded on the backfoot during this morning’s Asian session. Expected range today R16.40/$ - R16.70/$.

South African bourse

The JSE All Share (+0.21 percent) was lifted by gains large banking stocks. The share prices of Standard Bank (+5.38 percent) and First Rand (+5.39 percent) closed firmly on the front foot. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.29 percent) traded higher.

Brent crude oil

The Brent oil price was up slightly after trading in a tight range as concerns over surging global Covid-19 cases kept gains to a minimum. At the close of local trade, benchmark Brent crude futures quoted 0.07 percent firmer at $42.88pb.

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