WATCH: Rand trades weaker overnight
JOHANNESBURG - The rand traded on the back foot as a weak growth outlook and political uncertainty weighed according to NKC Research.
The IMF lowered South Africa’s growth forecast for 2020 to 0.8 percent (from 1.1 percent previously) while shaving 0.4 ppts off the 2021 forecast to a modest expansion of 1.0 percent. The downward revision in the forecast trajectory came in response to deteriorating public finances and worsening strain imparted by structural constraints, including a stressed national grid. Traders were also careful as the African National Congress (ANC) party held an important meeting on the domestic economy. At the close of local trade, the rand quoted 0.33 percent softer at R14.50/$, after trading in range of R14.44/$ - R14.57/$. The rand traded weaker overnight. Expected range today R14.40/$ - R14.65/$.
South African bourse
The JSE All Share (-0.26 percent) slipped yesterday, amid thin global trade, as investors engaged in profit taking following last week’s solid performance. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.10 percent) traded on the back foot.
Brent crude oil
The Brent oil price eased in mid-day trading after prices soared when two Libyan production bases were forced to shut operations. At the close of local trade, benchmark Brent crude futures quoted 0.30 percent lower at $65.46pb. Crude prices continued lower during Asian trade this morning as supply concerns faded.
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