File image: IOL
File image: IOL

WATCH: Rand extends losses overnight

By Compiled by Dhivana Rajgopaul Time of article published Jan 30, 2020

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JOHANNESBURG - The South African currency remained on tenterhooks despite steadying somewhat during the early session as external factors dominated direction according to NKC Research. 

Risk aversion related to coronavirus pandemic fears however took a backseat to the impending US monetary policy decision and Fed Chair Powell’s press conference. Market participants awaited the outcome of the US FOMC meeting with abated breath amid the possibility of the Fed adjusting the interest rate on excess reserves (IOER), with market participants also keen to see if the Fed announces any plans to change its bill purchase or repo operations. At close of local trade, the rand quoted 0.49 percent weaker at R14.61/$, after trading in range of R14.53/$ - R14.64/$. The rand extended losses overnight. Expected range today R14.50/$ - R14.80/$.

South African bourse

The JSE All Share (+1.12 percent) closed higher yesterday, in step with European and US stock markets. In local news, Tiger Brands (+0.95 percent) announced that its Chief Executive will retire at the end of this month, while the current CFO will take over the role in February. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.38 percent`) traded in the red.

Brent crude oil

The Brent oil price struggled during yesterday’s European session as traders weighed virus fears against talks of extended Opec supply cuts. At the close of local trade, benchmark Brent crude futures quoted 0.91 percent lower at $59.59pb. Crude prices sank during Asian trade this morning.

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