JOHANNESBURG - The rand briefly strengthened to its best level against the US dollar in 12 weeks in the wake of the US midterm election results during European trade yesterday according to NKC Research.
The South African currency rallied to below the R14/$ level thanks to broad greenback weakness and lower US bond yields after the Democrats took back the House of Representatives. However, the rand pared some gains in late afternoon trade as US bond yields ticked higher again in anticipation of Thursday’s Fed policy meeting announcement. At the close of local trade, the rand quoted 0.8 percent stronger at R13.96/$, after trading in the range of R13.89/$ - R14.19/$. The rand traded stronger overnight. Expected range today R13.70/$ - R14.05/$.
South African bourse
The JSE All Share (+0.5 percent) ended firmer yesterday, thanks to gains in large retail (+3.1 percent) and property (+2 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.2 percent) traded higher. In local news, among the day’s standout retailers were Woolworths (+5.7 percent), and Mr Price (+4.9 percent).
Brent crude oil
The Brent oil price traded sharply higher yesterday, following reports that Russia and Saudi Arabia are discussing the possibility of cutting crude supply in 2019. At the close of local trade, the Brent oil price quoted 1.1 percent higher at $72.8/pb. Crude prices dipped lower this morning.
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