WATCH: Rand rises on softer greenback
JOHANNESBURG - The South African rand edged modestly firmer as the greenback stumbled over a sombre inflation report, outweighing lingering fears surrounding a second wave of Covid-19 infections according to NKC Research.
US inflation plunged from 1.5 percent y-o-y in March to 0.3 percent y-o-y in April, posting the largest decline since 2008. This, in turn, fuelled speculation than the US might adopt negative interest rates somewhere in the future, which put the dollar on the defensive during yesterday’s session. At the close of local trade, the rand quoted 0.96 percent stronger at R18.23/$. The rand fell during New York trading but regained somewhat early this morning. Expected range today R18.20/$ - R18.60/$.
South African bourse
The JSE All Share (+0.23 percent) ended in the black yesterday, on the back of gains in large gold mining (+2.47 percent) and technology (+1.31 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.72 percent) traded weaker.
Brent crude oil
The Brent oil price reversed early gains yesterday, before reacting positively to vocal commitment from Saudi Arabia to deepen production cuts next month to syphon the supply glut, as it dipped back below key levels yesterday. At the close of local trade, benchmark Brent crude futures quoted 0.23 percent higher at $29.89pb. Crude prices traded flat during Asian trade this morning.
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