Rand on the back foot ahead of Sarb meeting
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JOHANNESBURG - The South African currency traded on a weaker footing as traders await the outcome of the Sarb’s final repo rate decision of the year according to NKC Research.
The local unit stumbled as global vaccine optimism ebbed, with the attention turning to Thursday’s announcement of the lending rates decision.
Expectations are for the Sarb to maintain interest rates at this week’s MPC meeting on Thursday, but signs of a gradual economic recovery and favourable external conditions do suggest that there is room for a final policy rate cut.
At the close of local trade, the rand quoted 0.38 percent weaker at R15.44/$, after trading in range of R15.29/$ - R15.45/$. The rand traded weaker overnight. Expected range today R15.25/$ - R15.75/$.
South African bourse
The JSE All Share (+0.47 percent) closed in the black yesterday, with modest gains scattered across the board, except for large gold stocks (-3.02 percent). In the overall emerging market sphere, the MSCI Emerging Market Index (-0.37 percent) traded lower.
Brent crude oil
The Brent oil price traded higher yesterday, bolstered by vaccine optimism and hopes that Opec and its allies will postpone increasing oil output during its upcoming meeting. At the close of local trade, benchmark Brent crude futures quoted 2.94 percent higher at $44.49pb. Crude prices traded flat during Asian trade this morning.
BUSINESS REPORT ONLINE