WATCH: Rand attempts to claw back previous day losses
JOHANNESBURG - The rand attempted to claw back previous day losses although gains were limited as global demand for the greenback surged according to NKC Research.
The dollar started out slow but soared higher in European trading amid widespread dollar funding concerns. Meanwhile, the Sarb is scheduled to convene for a rate-setting meeting tomorrow, at which time we expect a rate cut of 50 bps to 5.75 percent. The consensus is for a cut, with analyst forecasts ranging between 25 and 50 bps.
We expect that this month’s cut will be followed by a 25-bps reduction in May as the central bank metes out monetary stimulus to limit the depth of an expected contraction. At the close of local trade, the rand quoted 0.77 percent weaker at R16.64/$, after trading in range of R16.44/$ - R16.72/$. The rand traded flat overnight. Expected range today R16.35/$ - R16.85/$.
South African bourse
The JSE All Share (+2.67 percent) regained some lost ground yesterday, in step with most major global equity markets. In local news, Aspen (+7.34 percent) announced that it will ramp up production of medicines following a bout of panic buying amid growing coronavirus concerns. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.78 percent) traded lower.
Brent crude oil
The Brent oil price fell yesterday as traders scurried for storing space as millions of barrels continue to flood a saturated global market. At the close of local trade, benchmark Brent crude futures quoted 3.70 percent lower at $29.65pb. Crude prices were downbeat during Asian trade this morning.
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