JOHANNESBURG - The South African rand struggled yesterday after having benefited from broad-based dollar weakness as traders digested last week’s dovish Fed statement – which opened the door to a rate cut at next month’s meeting according to NKC Research.
In the near term, directional guidance on US trade policy –a source of volatile risk sentiment – will be informed by the G20 summit, which will take place later this week, as well as ongoing geopolitical concerns as the US threatened more sanctions on Iran. At the close of local trade, the rand quoted 0.4 percent weaker at R14.35/$, after trading in range of R14.24/$ - R14.40/$. The rand traded little changed overnight. Expected range today R14.20/$ - R14.50/$.
South African bourse
The JSE All Share (-0.3 percent) ended lower yesterday, dragged by losses in large industrial (-2.2 percent) and bank (-1.3 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.02 percent) traded little changed. In local news, the likes of Sibanye-Stillwater (+4.8 percent) Harmony (+3.6 percent) and AngloGold (+3.5 percent) rumbled higher yesterday thanks to a buoyant gold price.
Brent crude oil
The Brent oil price dipped weaker yesterday, dragged by concerns of weakening demand following a spell of impressive gains last week. At the close of local trade, benchmark Brent crude futures quoted 1.1 percent lower at $64.72pb. Crude prices traded weaker during Asian trade this morning.
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