JOHANNESBURG - The rand lost ground on Thursday, breaching the R15/$ threshold during the latter part of the day’s trading according to NKC Research.
The MPC played into expectations by keeping the country’s benchmark policy rate steady following the March convention. The central bank expects consumer price inflation to average 4.3 percent this year (previously: 4.0 percent), before increasing to 4.4 percent in 2022 and 4.5 percent in 2023.
Fuel and electricity prices are expected to be the main drivers behind higher consumer price pressures over the short term. As a result of these price pressures, we see inflation moving above the midpoint of the target range during the latter part of Q2.
At the close of local trade, the rand quoted 0.77 percent weaker at R15.04/$, after trading in range of R14.86/$ - R15.04/$. The local unit inched stronger overnight. The expected range of the rand against the dollar today is R14.80/$ - R15.20/$.
South African bourse
The JSE All Share (-0.73 percent) ended in negative territory again yesterday, dragged by losses across the board. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.77 percent) traded in the red.
Brent crude oil
The Brent oil price traded lower on Thursday as tighter movement restrictions in Europe weighed on future fuel demand prospects. At the close of local trade, benchmark Brent crude futures quoted 0.84 percent lower at $62.53pb. Crude prices traded little changed during Asian trade this morning.
BUSINESS REPORT