JOHANNESBURG - The South African rand rode the tailwinds of improving risk appetite as promising drug trial results sparked hopes for a Covid-19 vaccine according to NKC Research.
The dollar sank as optimism surrounding an experimental drug stoked risk appetite, while expectations for additional monetary stimulus ahead of the FOMC meeting announcement weighed on the greenback. The dollar ebbed further in the face of a weaker-than-expected US GDP reading for Q1. At the close of local trade, the rand quoted 1.45 percent stronger at R18.28/$, after trading in range of R18.26/$ - R18.67/$. The rand extended gains in New York trading but levelled off slightly this morning. Expected range today R18.00/$ - R18.45/$.
South Africa bourse
The JSE All Share (+1.66 percent) ended higher yesterday, led by gains in large financial (+4.33 percent) and resources (+3.38 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.88 percent) traded firmer.
Brent crude oil
The Brent oil price vaulted higher yesterday after data by the American Petroleum Institute (API) showed US stockpiles rose by 10 million barrels to 510 million barrels in the week to April 24, less than expected. At the close of local trade, benchmark Brent crude futures quoted 11.02 percent higher at $23.28pb. The price of brent crude oil extended gains during this morning’s Asian trading session.