Photo: File
Photo: File

Rand inches firmer

Time of article published Oct 27, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency oscillated ahead of a stacked economic calendar, both at home and abroad, against a global risk-off mood backdrop fuelled by dwindling potential for new fiscal stimulus, United States election risk and a sharp rise in global coronavirus cases according to NKC Research.

The medium-term budget policy statement will dominate the local calendar this week as South Africa’s fiscal deficit is expected to reach 14.9 percent of GDP this year.

As a risk conductor, the South African rand is positioned to benefit from a positive surprise. In addition, South Africa may be more resilient to risks emanating from the US and Europe, sheltered by the recent acceleration in China’s credit and domestic demand cycle, with both credit and hard data confirming signs of a meaningful rebound.

At the close of local trade, the rand quoted 0.07 percent stronger at R16.25/$, after trading in range of R16.16/$ - R16.32/$.

South African bourse

The JSE All Share (-0.81 percent) traded negative yesterday, dragged by losses in large financial (-1.35 percent) and consumer goods (-1.49 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.51 percent) traded lower.

Brent crude oil

The Brent oil price traded on the back foot yesterday due to supply concerns after Libya's National Oil Corp (NOC) ended force majeure on remaining facilities. Meanwhile, soaring coronavirus cases across Europe and the US bode ill for future fuel demand. At the close of local trade, benchmark Brent crude futures quoted 0.83 percent lower at $40.53pb.

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