JOHANNESBURG - The South African rand surged to an 11-week high against the greenback as investors piled into risk assets according to NKC Research.
Risk appetite was stoked by optimism that economies reopening across the globe will contribute to a swift recovery from the pandemic shock. The stronger rand coupled with structurally lower oil prices bode well for the domestic fuel price outlook. The steep depreciation of the rand over the past couple of months was one of the main contributing factors to Wednesday’s jump at the pump. At the close of local trade, the rand quoted 1.07 percent stronger at R16.91/$, after trading in range of R16.90/$ - R17.18/$. The rand remained steady below the psychological R17-level overnight. Expected range today R16.75/$ - R17.15/$.
South African bourse
The JSE All Share (+2.19 percent) extended gains yesterday as gains in large banking (+10.42 percent) and retail (+8.66 percent) shares outweighed losses in gold mining (-7.36 percent) stock. In the overall emerging market sphere, the MSCI Emerging Market Index (+2.12 percent) traded higher.
Brent crude oil
The Brent oil price dropped after briefly touching $40pb for the first time since early-March, as doubts emerge over potential Opec+ supply cuts. At the close of local trade, benchmark Brent crude futures quoted 2.90 percent weaker at $39.24pb. Crude prices traded flat during Asian trade this morning.