At the close of local trade, the rand quoted 0.7 percent weaker, at R14.43/$, after trading in range of R14.25/$ to R14.44/$. Photo: AP Photo/Denis Farrell
At the close of local trade, the rand quoted 0.7 percent weaker, at R14.43/$, after trading in range of R14.25/$ to R14.44/$. Photo: AP Photo/Denis Farrell

Rand clipped by weak retail sales data

By BR Reporter Time of article published Sep 16, 2021

Share this article:

THE downbeat tone imparted by JP Morgan’s sell recommendation on Tuesday, was compounded by the weak retail sales data for July, according to NKC Research.

At the close of local trade, the rand quoted 0.7 percent weaker, at R14.43/$, after trading in range of R14.25/$ to R14.44/$.

Meanwhile, the NKC says the rand should retain support from external factors, including our view for moderate dollar weakness as we approach year end, predicated on a patient Fed, growth outperformance outside the US, yield curve re-steepening post Jackson Hole, and a modest greenback overvaluation.

One of the key drivers that has re-emerged of late is that of a patient Fed, with the monetary authority less overly concerned about inflation dynamics than in June, even if acknowledged in a cursory fashion.

The traded sideways overnight. The expected range of the rand against the dollar today is R14.30/$ to R14.60/$.

South African bourse

The sub-indices were a mixed bag as technology (-0.9 percent) and industrials (-0.6 percent) closed in the red, while resources (+1.2 percent) and telecommunication (+1.5 percent) ended the day higher.

The JSE All Share (+0.13 percent) edged firmer yesterday. In local news, Rand Merchant Investment (RMI) said that it expects earnings per share to increase between 10 to 12 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.6 percent) traded lower.

Brent crude oil

The large drawdown on US crude inventories together with an anticipated rise in demand as vaccine rollouts gain momentum, saw the Brent oil price break through the $75 mark yesterday. At the close of local trade, benchmark Brent crude futures quoted 2.4 percent higher, at $75.9pb. Crude prices traded sideways during Asian trade this morning.

BUSINESS REPORT ONLINE

Share this article: