Rand trades on the back foot
JOHANNESBURG – The rand steps back from a six-week high on a dollar bounce, as US producer prices saw another powerful rise last month on the back of rising energy prices and strengthening economic momentum according to NKC Research.
The fiscally stimulated revival of consumer demand and strong base effects will lead to faster annual inflation rates in the spring. However, these should be temporary dynamics, and we expect the Fed to remain accommodative through mid-2023.
On local soil, South Africa’s economic growth forecast for this year has been revised to 2.5 percent . This came after two consecutive months of increases in the Absa Purchasing Managers’ Index (PMI) and an acceleration in new vehicle sales last month.
At the close of local trade, the rand quoted 0.22 percent weaker at R14.59/$, after trading in the range of R14.51/$ – R14.62/$. The local unit extended losses during this morning’s Asian trading session. The expected range of the rand against the dollar today is R14.55/$ – R14.70/$.
Brent crude oil
The Brent oil price remained in a narrow band on Friday as rising supply and uncertainty over Covid-19’s impact on fuel demand kept a lid on gains. At the close of local trade, benchmark Brent crude futures quoted 0.14 percent higher at $63.05pb. Crude prices wobbled during Asian trade this morning.
BUSINESS REPORT ONLINE