After a wobbly start to the European trading session, the rand recovered some initial losses as the dollar retreated in caution before key US data releases this week according to NKC Research. (AP Photo/Denis Farrell)
After a wobbly start to the European trading session, the rand recovered some initial losses as the dollar retreated in caution before key US data releases this week according to NKC Research. (AP Photo/Denis Farrell)

Rand recovers early losses

By Dhivana Rajgopaul Time of article published Apr 13, 2021

Share this article:

JOHANNESBURG – After a wobbly start to the European trading session, the rand recovered some initial losses as the dollar retreated in caution before key US data releases this week according to NKC Research.

We believe that this year, many dollar-supportive factors should reinstate themselves including the US economy as the global locomotive and expectations of higher interest rates.

This should lead to 3 percent year-over-year dollar appreciation in December: we foresee a stronger US dollar in 2021 with gains against the euro, yen and emerging markets.

While there was no market reaction to Fed Chairman Powell’s interview on 60 Minutes, we took note of his comments that the economic outlook “has brightened substantially”, and the Fed expects growth in the economy and jobs will improve “much more quickly,” with a “very strong” second half of this year.

At the close of local trade, the rand quoted 0.36 percent stronger at R14.58/$, after trading in the range of R14.57/$ – R14.66/$. The rand traded little changed overnight. The expected range of the rand against the dollar today R14.55/$ – R14.70/$.

South African bourse

The JSE All Share (-1.19 percent) ended lower yesterday, dragged by losses in large resources (-2.09 percent) and technology (-2.07 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.61 percent) traded in negative territory.

Brent crude oil

The Brent oil price rose yesterday, buoyed by optimism of a strong recovery in the US economy this year. That said, surging Covid-19 cases across the globe kept a lid on gains. At the close of local trade, benchmark Brent crude futures quoted 1.56 percent higher at $63.97pb. Crude prices traded firmer during Asian trade this morning.

BUSINESS REPORT ONLINE

Share this article: