File image: IOL
File image: IOL

WATCH: Rands trades softer against the greenback

By Compiled by Dhivana Rajgopaul Time of article published Mar 27, 2019

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JOHANNESBURG - The rand traded softer yesterday as traders weighed a rebounding greenback and Brexit uncertainty, while awaiting directional guidance from Sarb and Moody’s later this week according to NKC Research. 

Latin American currencies traded weaker across the board as a result of weaker emerging market sentiment. At the close of local trade, the rand quoted 0.5 percent weaker at R14.40/$, after trading in range of R14.29/$ - R14.45/$. The rand traded weaker overnight. Expected range today R14.30/$ - R14.55/$. Factors likely to have an impact on the local unit this week include a Sarb meeting on Thursday; we believe the central bank will keep interest rates on hold. In addition, South Africa’s credit risk should grab attention as Moody’s is set to announce its rating decision on Friday.

South African bourse

The JSE All Share (+0.5 percent) ended higher yesterday led by gains in large mining (+1.4 percent) and property (+1.1 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (0.3 percent) traded higher. In local news, MTN (0.1 percent) shares came under pressure after Nigeria’s government said the company evaded taxes and urged a Lagos court not to block a $2bn penalty.

Brent crude oil

The Brent oil price traded higher yesterday, thanks to Opec-led supply cuts and expectations of lower US crude inventories. At the close of local trade, benchmark Brent crude futures quoted 0.9 percent higher at $67.98pb. Crude prices extended gains during Asian trade this morning.

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