The South African currency oscillated during yesterday’s trading session on rising bets for a repo rate cut at the upcoming MPC meeting according to NKC Research. Photo: Reuters.
The South African currency oscillated during yesterday’s trading session on rising bets for a repo rate cut at the upcoming MPC meeting according to NKC Research. Photo: Reuters.

Rand trades little changed overnight

By Dhivana Rajgopaul Time of article published Jan 15, 2021

Share this article:

JOHANNESBURG - The South African currency oscillated during yesterday’s trading session on rising bets for a repo rate cut at the upcoming MPC meeting according to NKC Research.

We have pencilled in a rate cut to support the struggling demand-side. Meanwhile, Treasury prices fell in response to President-elect Biden’s proposal of $1.9trn in fiscal relief, as the Biden administration aims for a “shoot for the moon” approach to the package.

That being said, Fed officials individually have started to provide some specific forward guidance regarding the tapering of QE asset purchases. Atlanta Fed President Bostic has suggested it could begin as early as late this year.

However, we do not expect the tapering will start before 2022, but remain cautious of policy mistake-induced swings in sentiment.

At the close of local trade, the rand quoted 0.76 percent stronger at R15.16/$, after trading in range of R15.10/$ - R15.30/$. The local unit traded little changed overnight. Expected range today R15.00/$ - R15.30/$.

South African bourse

The JSE All Share (+0.65 percent) ended higher during Thursday’s session, led by gains large technology (+4.08 percent) and industrial (+1.53 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.40 percent) traded lower.

Brent crude oil

The Brent oil price dropped for the second consecutive session yesterday as rising Covid-19 infections dampened the outlook for fuel demand. At the close of local trade, benchmark Brent crude futures quoted 1.0 percent lower at $55.70pb. Crude prices dimmed slightly during Asian trade.

BUSINESS REPORT

Share this article:

Related Articles