After breaking below R14.70/$ on Tuesday, the rand quickly made its way to levels in the low R14.60s as emerging market stocks rallied. File Photo: IOL

DURBAN – The rand traded at a relatively low R14.60 on Wednesday, a factor the analysts attributed to emerging market stocks rallying.

Treasury partner at Peregrine Treasury Solutions Bianca Botes said the domestic currency raced to the R14.60s level as emerging market stocks rallied. 

“After breaking below R14.70/$ on Tuesday, the rand quickly made its way to levels in the low R14.60s as emerging market stocks rallied,” said Botes

At 5pm the domestic currency was bid 5c weaker than the same time bid on Tuesday at R14.64 against the dollar. Against the pound it was 9c weaker at R18.86 and bid at R16.28 to the euro. 

Botes said said the consumer price index data would assist in setting the tone for the SA Reserve Bank’s interest rate decision in November, while the data calendar was on the light side for the rest of the world.

Nedbank CIB research analyst Reezwana Sumad said on Tuesday, the local trading session got underway with the rand trading in the mid-14.70s. This was another session in which the domestic unit posted steady gains over the course of the day, reaching a best level of 14.60 by the time of the local close. 

“The overnight sessions were subdued this morning, the rand is currently trading at 14.61 to the dollar,” said Sumad. 

She added that the rand traded steadily firmer as South Africa encountered the dollar selling from various quarters. This saw it reach the 14.6000 level, which was close to the technical objective. 

“While it remains sub-14.70, the next technical objective will likely be around the 14.40 level. Emerging markets across the board have improved over the most recent sessions, while the major markets have retreated marginally. Indications from the UK are that the prime minister would rather call for a general election than accept a further delay in Brexit,” said Sumad.

Meanwhile, JSE stocks declined with the blue-chip Top40 index declined 0.74 percent to  49 244.55 points while the broader all share index increased 0.65 percent to 55 571.45 points.

The biggest earners were Anglo Gold which gained 5.53 percent at R315.07 followed by Sibanye with 5.27 percent at R25.79 then Goldfields with 4.47 percent to R83.50. Fortressa increased by 3.35 percent at R21.00 while Motus lifted 3.10 percent to R76.21. 

The biggest losers were Naspers which shed 5.33 percent to R2 141.50 followed by Prosus dropping 5.21 percent to R1 020.42 while Assore decreased by 3.90 percent to R238.41. Shoprite also lost 3.50 percent at R132.74 and Standard Bank also losing 3.50 percent to R175.

BUSINESS REPORT