Rand trades on the back foot after President’s address
JOHANNESBURG - The local currency traded softer as South Africans awaited President Ramaphosa’s evening address with abated breath, although lingering global risk-on mood softened the impact of domestic developments according to NKC Research.
Local news was dominated by reactions to ANC secretary-general Ace Magashule’s arrest warrant – which was issued on Tuesday – with the ruling ANC affirming he has not been asked to step down, despite pressure from within the party rising to flush out “corrupt elements.”
At the close of local trade, the rand quoted 0.39 percent weaker at R15.69/$, after trading in range of R15.53/$ - R15.73/$.
South African bourse
The JSE All Share (-0.11 percent) slowed yesterday following its vaccine-fuelled run this week. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.44 percent) traded lower. Though EMs suffered more damage in the equity markets and have recovered less losses since the pandemic outbreak, their financial markets are shallower. EMs’ real economies depend more on conventional bank lending and are less sensitive to asset prices.
Brent crude oil
The Brent oil price continued to trade on the front foot yesterday after US crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, according to the latest American Petroleum Institute data. At the close of local trade, benchmark Brent crude futures quoted 3.61 percent higher/lower at $44.73pb. Crude prices were flat during Asian trading.
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