File image: IOL
File image: IOL

WATCH: Rand swiftly surrenders yesterday’s gains

By Compiled by Dhivana Rajgopaul Time of article published Feb 27, 2020

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JOHANNESBURG - The South African currency danced to the beat of the budget drum yesterday, with a cautious tone pre-address easing as finance minister Mboweni laid out spending for the upcoming fiscal year according to NKC Research. 

An austere budget characterised by spending cuts to allow reprieve on the revenue side – against expectations for a (much) heavier burden on the struggling private sector – aided the local unit. At the close of local trade, the rand quoted 0.44 percent stronger at R15.13/$, after trading in the range of R15.10/$ - R15.34/$. The rand swiftly surrendered yesterday’s gains in after-hours trading but steadied in this morning’s Asian session. The expected range of the rand today is R15.15/$ - R15.45/$.

South African bourse

The JSE All Share (+0.79 percent) regained some earlier losses yesterday, thanks to better performing retail (+5.25 percent) and industrial (+3.93 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.25 percent) traded lower.

Brent crude oil

The Brent oil price traded on the back foot yesterday as Asia, Europe and oil-producing countries in the Middle East reported new coronavirus cases, while the US cautioned against an inevitable pandemic. At the close of local trade, benchmark Brent crude futures quoted 0.8 percent lower at $54.72pb. The Brent crude prices traded softer during Asian trade this morning.

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