The rand found support in risk-on sentiment on Friday as investors mulled the implications of the US-Sino phone call, according to NKC Research.
The White House confirmed that US President Biden and Chinese leader Xi Jinping had a “broad, strategic discussion” in a first call in seven months, which stirred optimism for thawing tensions between the two countries.
NKC expects the rand to retain support from external factors, including our view for moderate dollar weakness as we approach year-end, predicated on a patient Fed, growth out performance outside the US, yield curve re-steepening post-Jackson Hole, and a modest greenback over valuation.
At the close of local trade, the rand quoted 0.4 percent stronger at R14.12/$, after trading in the range of R14.07/$ - R14.23/$. The rand traded on the back foot overnight. The expected range of the rand against the dollar today is R14.10/$ - R14.40/$.
Brent crude oil
Close to three quarters of the US Gulf’s offshore oil production remains halted after Hurricane Ida, adding to growing signs of tight supply. The Brent oil price briefly touched $73pb on Friday. At the close of local trade, benchmark Brent crude futures quoted 0.9 percent higher at $72.7pb. Crude prices traded higher during Asian trade this morning.
BUSINESS REPORT ONLINE