File image: IOL
File image: IOL

WATCH: Rand extends gains overnight

By Compiled by Dhivana Rajgopaul Time of article published Dec 13, 2019

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JOHANNESBURG - The South African currency garnered support from an unwinding of long dollar positions post-FOMC announcement to shelter from defensive positioning ahead of the domestic mining production release according to NKC Research.

The FOMC decision was met with dismay from dollar bulls, with the unwinding of long dollar positioning stoking risk appetite across the globe. The rand benefited from buoyant risk appetite as analysts awaited an uninspiring mining production release for October to cap off a dismal week marred by rolling blackouts. At the  close of local trade, the rand quoted 0.61 percent stronger at R14.58/$, after trading in range of R14.58/$ - R14.70/$. The rand extended gains overnight. The expected range of the rand against the dollar today is R14.30/$ - R14.60/$.

South African bourse

The JSE All Share (+0.1 percent) ended firmer yesterday as EM sentiment was bolstered by news that China and the US reached a phase 1 deal in principle, pending President Donald Trump’s approval. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.18 percent) traded higher.

Brent crude oil

The Brent oil price rallied late yesterday, on the back of renewed hopes that a trade agreement between Washington and Beijing may soon be approved. At the close of local trade, benchmark Brent crude futures quoted 0.86 percent higher at $64.54pb. Crude prices remained buoyant during Asian trade this morning. 

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