JOHANNESBURG - The local unit surrendered previous session gains as souring risk sentiment swept through global markets, worsened by abysmal mining production readings on domestic soil according NKC Research.
Investors dumped riskier currencies after the FOMC, on Wednesday, reaffirmed its dovish forward guidance but refrained from offering any specific date- or data-contingent forward guidance. The policy rate will likely remain pegged near zero past 2022, open-ended and flexible QE will continue, and the Fed stands ready to lend via its emergency facilities. At the close of local trade, the rand quoted 1.8 percent weaker at R17.04/$, after trading in the range of R16.49/$ - R17.08/$. The rand looked to regain early this morning following the sell-off. Expected range today R16.90/$ - R17.30/$.
South African bourse
The JSE All Share (-0.70 percent) ended lower yesterday, as the mood soured, dragged by losses in large financial (-2.18 percent) stocks, but this was offset somewhat by gains in prominent gold mining (+10.26 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.87 percent) traded lower.
Brent crude oil
The Brent oil price cratered yesterday due to demand concerns following an uptick in new coronavirus cases. At the close of local trade, benchmark Brent crude futures quoted 3.43 percent lower at $38.89pb. Crude prices struggled for traction in Asian trade this morning.
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