Rand gains more ground, boosting chance of fuel price cut
The rand, which has been trading at its best level in 18 months, strengthened further on Wednesday morning, bolstering the case for a cut in fuel prices in the near term
The rand strengthened 0.33% to R13.81/$, bringing the month-to-date gains to about 4.6%, which makes it the best-performing emerging-market currency.
The spot price of Brent crude, meanwhile, has been stable at just below $70 a barrel for the better part of the month.
The stronger currency reduces the cost of imported products, helping to keep inflation in check.
The subsiding worry on the outlook for US inflation, which accelerated to its highest level in 12 years in April and raised the prospect of higher interest rates, has benefited the rand.
In equities, the JSE was likely to most move higher on Wednesday, following the moderately positive session in Asia, where Hong Kong’s Hang Seng gained 0.84% and Japan’s Nikkei 225 rose 0.37%.
The JSE has been steadily recovering after hitting a soft patch earlier in May, in line with other global markets. The all share index is still 3.56% below its recent peak, which it touched on May 7.
In commodities, spot price of platinum was up 1.26% to $1,206.16/oz and Brent gained 0.15% to $68 a barrel.
Source: businesslive.co.za
