JOHANNESBURG – The rand strengthened yesterday again dropping below the R14.8/$ mark according to NKC Research.
The latest trade data surprised to the upside, supporting the view that global trade remained robust earlier this year. South Africa continues to benefit from higher prices of key export materials, and a pick-up in external demand as the global recovery takes hold, albeit with regular stumbles, has also supported exports.
Higher exports and the subsequent improvement in the trade surplus should support the rand going forward. Yesterday, also saw the announcement of several long-term bond auctions to be held next week.
At the close of local trade, the rand quoted 1.12 percent stronger at R14.77/$, after trading in range of R14.75/$ – R14.96/$. The local unit traded slightly weaker overnight. The expected range of the rand against the dollar today is R14.65/$ – R15.00/$.
South African bourse
The JSE All Share (-1.20 percent) ended deep in the red yesterday, following losses in large financial (-2.25 percent) and industrial (-1.47 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.23 percent) traded in negative territory.
Brent crude oil
The Brent oil price traded softer yesterday, amid concerns about the market’s recovery after Opec+ lowered its demand growth forecast for this year. At the close of local trade, benchmark Brent crude futures quoted 1.07 percent lower at $63.77pb. Crude prices traded weaker during Asian trade this morning.
BUSINESS REPORT ONLINE