JOHANNESBURG - The rand traded firmer as attention to the Federal Open Market Committee decision and Fed chair Powell’s post meeting press conference.
As we anticipated, despite faster US GDP, employment growth and accelerating inflation, the FOMC is maintaining its dovish forward guidance.
Chairman Powell re-emphasised that the pandemic presented downside risks to the economy, the recovery remained “uneven and incomplete” and the labour market remains far from its pre-pandemic status.
At the close of local trade, the rand quoted 0.67 percent stronger, at R14.30/$, after trading in range of between R14.27/$ and R14.44/$. The local unit traded steady overnight. The expected range of the rand against the dollar today is R14.00/$ to R14.35/$.
Brent crude oil
The Brent oil price was boosted by expectations of stronger fuel demand yesterday, despite concerns about surging Covid-19 cases in India. At the close of local trade, benchmark Brent crude futures quoted 0.74 percent higher, at $67.12pb.
BUSINESS REPORT ONLINE