Rand recovers in afternoon trade
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JOHANNESBURG - The rand endured considerable depreciatory pressure during the early European session, temporarily teetering on the R14.2/$ threshold before recovering during afternoon trade, according to NKC Research.
Thursday’s mining data confirmed expectations of a strong recovery in the sector. Buoyant commodity prices bode well for mining going forward, with the sector slated as a potential catalyst to spur industrial investment and support a broader South African economic recovery.
Furthermore, Thursday saw the release of the latest Reuters poll suggesting that most analysts expect that the South African Reserve Bank will keep interest rates unchanged at the Monetary Policy Committee meeting next week.
In turn, the polls showed that inflation is expected to average 4.2 percent in 2021 before increasing marginally to an average rate of 4.3 percent in 2022.
At the close of local trade, the rand quoted 0.12 percent stronger at R14.10/$, after trading in range of R14.06/$ - R14.20/$. The rand traded steady overnight. The expected range of the rand against the dollar today is R14.00/$ - R14.30/$.
South African bourse
The JSE All Share (-1.86 percent) traded deep in the red on Thursday, dragged by losses in large technology (-3.18 percent) and resource (-3.05 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.71 percent) traded on the back foot.
Brent crude oil
The Brent oil price snapped its recent rally on Thursday, pressured by concerns over India’s coronavirus crisis and the resumption of the Colonial Pipeline – the largest US fuel pipeline network. At the close of local trade, benchmark Brent crude futures quoted 1.13 percent lower at $67.59pb. Crude prices extended losses during Asian trade this morning.
BUSINESS REPORT ONLINE