WATCH: Muted dollar sees rand clawing back losses
JOHANNESBURG - The rand regained late into yesterday’s European session as investors scrutinised the supplementary budget against a muted US dollar according to NKC Research.
In turn, a meeting of national carrier SAA’s creditors was adjourned on Thursday before a rescue plan vote, with the meeting only set to resume by July 14. Turning the attention to the US economy, economic conditions are evolving at such a swift pace that the final Q1 GDP report, released yesterday, feels exceptionally stale.
The unrevised 5.0 percent GDP contraction – the sharpest decline since 2008 – confirms the onset of the Global Coronavirus Recession. At the close of local trade, the rand quoted 0.85 percent stronger at R17.26/$, after trading in a range of R17.23/$ - R17.53/$. The rand continued to appreciate during New York trading. Expected range today R17.00/$ - R17.30/$.
South African bourse
The JSE All Share (-0.98 percent) ended lower yesterday, dragged by losses across the board. Financial (+0.48 percent) stock were among the few bright spots thanks to a stronger rand. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.63 percent) traded lower.
Brent crude oil
The Brent oil price regathered composure following a steep sell-off yesterday as a result of a rising number in new coronavirus cases. At the close of local trade, benchmark Brent crude futures quoted 1.61 percent higher at $40.50pb. Crude prices traded firmer during Asian trade this morning.
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