JOHANNESBURG - The rand held on to overnight gains during yesterday’s European trading session according to NKC Research.
The South African currency is trading at its strongest level against the US dollar in more than three months as EM debt concerns have taken a back seat to falling global equity and oil prices, which has eased expectation of higher global inflation and interest rates. At the close of local trade, the rand quoted 0.7 percent stronger at R13.64/$, after trading in the range of R13.61/$ - R13.79/$. The rand traded flat overnight. Expected range today R13.55/$ - R13.85/$.
South African bourse
The JSE All Share (-0.3 percent) ended lower yesterday dragged by losses in large consumer goods (-1 percent) and retail (-0.6 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.64 percent) traded higher. In local news, Lonmin (+1.1 percent) shares were lifted after the mining house reported its first annual operating profit in four years.
Brent crude oil
The oil price reversed earlier losses on the back of news that Russia acknowledged the need to implement supply cuts. This followed earlier reports that Saudi Arabia said it would not lower output on its own. At the close of local trade, the Brent oil price quoted 0.9 percent higher at $59.45/pb. Crude prices were little changed during Asian trade this morning.
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