South Africa’s hedge fund industry is betting on new rules to help reverse a record drop in assets under management. File Photo: IOL

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The South African currency buckled under external factors – including a more buoyant greenback – as well as fiscal and debt sustainability warnings according to NKC Research. 

The International Monetary Fund warned on Monday that government needs to enact reforms urgently in order to stave off prolonged weak growth marked by “rising unemployment, inequality and greater credit-rating risk.”. At the close of local trade, the rand quoted 0.17 percent weaker at R14.78/$. The rand sunk lower in Asian trade this morning. The expected range of the rand against the greenback today is R14.70/$ - R15.00/$.

South African bourse

The JSE All Share (-1.2 percent) ended in the red yesterday as a weaker currency and gold prices weighed on large bank(-3.0 percent) and gold mining (-2.0 percent) stocks, respectively. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.53 percent) traded lower.

Brent crude oil

The Brent oil price traded higher yesterday, on the back of trade deal hopes, as it breached the $64 echelon for the first time since September. At the close of local trade, benchmark Brent crude futures quoted 0.96 percent higher at $64.20pb. The brent crude prices remained upbeat during Asian trade this morning. 

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