WATCH: Rand trades firmly on the backfoot
JOHANNESBURG - The South African currency traded firmly on the back foot during the European session as geopolitical tensions countered anticipation of Fed easing this week, with souring sentiment pressuring risk-sensitive currencies according to NKC Research.
In turn, the trade-weighted dollar was initially positioned to benefit from the supply-side pressure on oil prices, with the greenback set to remain amongst the highest-yielding currencies even in consideration of a 25-bps rate cut this week. At the close of local trade, the rand quoted 0.28 percent weaker at R14.72/$, after trading in range of R14.68/$ - R14.81/$. The rand traded steady overnight. Expected range today R14.50/$ - R14.85/$.
South African bourse
The JSE All Share (-1.66 percent) tracked global stock markets lower yesterday, against the backdrop of volatile oil prices, ahead of today’s Fed meeting. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.79 percent) traded lower.
Brent crude oil
The Brent oil price extended losses yesterday after Saudi Arabia’s energy minister gave reassurances that the oil producing nation will be able to restore lost oil production by the end of September. At the close of local trade, benchmark Brent crude futures quoted 5.78 percent lower at $64.64pb. Crude prices traded stabilised during Asian trade this morning.
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