File image: IOL
File image: IOL

WATCH: Rand succumbs to broad greenback strength

By Compiled by Dhivana Rajgopaul Time of article published Feb 21, 2020

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JOHANNESBURG - The South African currency succumbed to broad greenback strength and a sombre local backdrop as power rotation resumed according to NKC Research. 

Risk appetite ebbed to undermine external reprieve for the local unit. Traders are now awaiting the February 26 budget with abated breath, hopes pinned on a modicum of clarity on the embattled SOEs and dire debt situation. Turning to US soil, the minutes of the January FOMC meeting released on Wednesday reaffirmed the Fed’s wait-and-see policy stance as the Committee remains attune to downside risks to the outlook. At the close of local trade, the rand quoted 0.32 percent weaker at R15.10/$, after trading in range of R14.98/$ - R15.14/$. The rand remained on the back foot during early trade this morning. Expected range today R15.00/$ - R15.25/$.

South African bourse

The JSE All Share (-0.26 percent) ended lower yesterday, dragged by large financial (-1.73 percent) shares. In local news, Anglo American (+2.49 percent) stock shined after the global miner said full year profits rose by 9 percent thanks to higher iron ore and precious metal prices. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.76 percent) traded lower.

Brent crude oil

The Brent oil price traded in a narrow band yesterday, as new cases of the coronavirus in South Korea paused crude’s recent rally. At the close of local trade, benchmark Brent crude futures quoted 0.24 percent higher at $59.51pb. Crude prices traded softer during Asian trade this morning. 

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