Photo: Reuters.
Photo: Reuters.

Rand regains momentum overnight

Time of article published Jul 29, 2020

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Compiled by Dhivana Rajgopaul

JOHANNESBURG - The South African currency slipped weaker in the face of a firming greenback to partially overturn previous session gains according to NKC Research.

The attention will firmly turn to the US today, where we look for the US Fed to reaffirm its dovish forward guidance and may be ready to explicitly link policy to an inflation target. We believe the Fed is leaning towards stating it will not lift interest rates off the effective lower bound (ELB) until inflation is sustainably at or above the 2 percent y-o-y target. We expect that the FOMC will maintain open-ended QE asset purchases at least at the current pace through year-end. At the close of local trade, the rand quoted 0.54 percent weaker at R16.54/$, after trading in range of R16.36/$ - R16.60/$. The rand regained momentum overnight. Expected range today R16.35/$ - R16.80/$.

South African bourse

The JSE All Share (+0.29 percent) manged to eke out a gain yesterday, as investors held their breaths ahead of the Fed’s policy decision. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.83 percent) traded on the front foot.

Brent crude oil

The Brent oil price drifted lower yesterday as rising coronavirus cases across the globe weighed on fuel demand prospects. At the close of local trade, benchmark Brent crude futures quoted 0.39 percent weaker at $43.23pb. Crude prices traded flat during Asian trade this morning.

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