WATCH: Rand falls after poor SA merchandise trade data

The South African currency was one of the worst-performing EM currencies on Wednesday as disappointing South African merchandise trade data exacerbated weakness stemming from broad US dollar strength. The greenback rallied ahead of Friday’s US jobs report on the back of positive US data releases. At the close of local trade, the rand quoted 1.2 percent weaker at R14.80/$, after trading in the range of R14.57/$ – R14.85/$. The rand traded in a tight range overnight. Expected range today R14.60x/$ – R14.85/$.

The JSE All Share (+3.2 percent) ended higher yesterday led by gains in large mining (+4.2 percent) and consumer goods (+2.8 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+2.1 percent) traded higher. In local news, Impala Platinum (+10.4 percent) said that it is implementing a strategic restructuring plan that includes the retrenchment of 1.5k workers at its Rustenburg operations.

The Brent oil price traded lower yesterday, on evidence that showed Russian, Saudi and US oil supply is at record highs. At the close of local trade, the Brent oil price quoted 0.8 percent lower at $75.70/pb. Crude prices traded lower during Asian trade this morning.