WATCH: Rand trades firmer overnight
JOHANNESBURG - The South African currency struggled against an onslaught of souring global risk sentiment and broad greenback strength yesterday as the countdown to the pivotal budget delivery begins according to NKC Research.
The rand remained under pressure after Moody’s communicated a grin outlook for the domestic economy, which stoked fears of a credit rating downgrade next month. We anticipate that a disappointing budget come end-February, which will include a heavier tax burden to further stifle private consumption growth, will be the last nail in the coffin to force a downgrade action to junk status. At the close of local trade, the rand quoted 0.08 percent weaker at R15.04/$, after trading in range of R14.97/$ - R15.09/$. The rand traded firmer overnight. Expected range today R14.85/$ - R15.10/$.
South African bourse
The JSE All Share (-0.81 percent) ended lower yesterday, in line with major global stock markets. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.11 percent) traded weaker.
Brent crude oil
The Brent oil price surrendered previous sessions’ gains yesterday, as concerns over global crude demand and a lack of action by Opec+ weighed on prices. At the close of local trade, benchmark Brent crude futures quoted 0.28 percent lower at $56.92pb. Crude prices soared at the beginning of the New York session and continued to do so during Asian trade this morning.
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