JOHANNESBURG - The South African rand rallied against a receding dollar yesterday, buoyed by improving global risk appetite according to NKC Research.
We look for the South African Reserve Bank (Sarb) to implement another interest rate cut of 50 bps at the conclusion of its policy meeting today. At the close of local trade, the rand strengthened 1.96 percent past the psychological R18-level to reach R17.94/$, after trading in range of R17.93/$ - R18.35/$. The rand ticked slightly weaker overnight, while traders are likely to remain cautious ahead of today’s central bank meeting. Expected range today R17.70/$ - R18.30/$.
South African bourse
The JSE All Share (+0.37 percent) ended on a firmer footing yesterday, in step with global equity markets. In local news, the business administrators for retailer Edcon – the country’s first coronavirus-induced bankruptcy victim – indicated “reasonable prospects” to save the company, with the business rescue plan to be published on June 8. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.68 percent) traded higher.
Brent crude oil
The Brent oil price maintained its ascent yesterday, bolstered by data from the American Petroleum Institute that showed US crude stockpiles dropped by 4.8 million barrels to 521.3 million last week. At the close of local trade, benchmark Brent crude futures quoted 3.16 percent higher at $35.88pb. Crude prices extended gains during Asian trade this morning.