Rand rides the wave of downgrade as external conditions improve
JOHANNESBURG - The South African currency rode the wave of downgrades with ease as external conditions improved on the back of vaccine hopes according to NKC Research.
Risk assets applauded releases over the weekend that the United States aims to give the first vaccines to healthcare workers by mid-December, after promising trial results. The announcement stoked hopes that the rest of the world may follow suit with a vaccination programme, enabling a quicker recovery to a pre-pandemic trade environment.
At the close of local trade, the rand quoted 0.08 percent weaker at R15.43/$, after trading in a tight range of R15.26/$ - R15.44/$. The rand traded weaker overnight. The expected range of the rand against the dollar today is R15.25/$ - R15.50/$.
South African bourse
Overall, yesterday was a mixed bag but the JSE All Share (+0.2 percent) manged to eke out a slight gain thanks to a 4.0 percent advance in large tech. In the overall emerging market sphere, the MSCI Emerging Market Index rose 0.7 percent.
Brent crude oil
The Brent oil price built on last week’s gains as traders hoped for a recover in fuel demand following more successful coronavirus vaccine trials. At the close of local trade, benchmark Brent crude futures quoted 0.73 percent higher at $54.57pb. Crude prices traded firmer during Asian trade.
BUSINESS REPORT ONLINE