Rand runs out of steam

Compiled by Dhivana Rajgopaul

JOHANNESBURG – The South African currency began yesterday on the front foot as the looming FOMC announcement kept the greenback on the backfoot, with the rate decision overshadowing the local inflation release according to NKC Research.

However, the rand ran out of momentum in the afternoon and wobbled during the New York trading session as the United States Fed kept interest rates near zero. On the domestic data front yesterday’s releases failed to excite as South African credit growth eased in June. At the close of local trade, the rand quoted 0.25 percent weaker at R16.52/$, after trading in range of R16.39/$ – R16.57/$. The rand looked to be under pressure this morning. Expected range today R16.45/$ – R16.80/$.

South African bourse

The JSE All Share ended 0.39 percent higher yesterday led by gains in large financial stocks. In local news, Standard Bank cautioned yesterday that its half-year profit could plunge by close to 50 percent due to the devasting impact of Covid-19. Africa’s biggest bank by assets is not alone, other major lenders in South Africa have issued similar warnings. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.43 percent) traded firmer.