WATCH: Rand strengthens in wake of US Federal bank comments
File image: IOL
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JOHANNESBURG -The rand traded stronger against the greenback during European trade on Friday according to NKC Research.
The South African currency touched the R14/$ level thanks to US dollar weakness in the wake of dovish Fed comments. Market participants interpreted the Fed officials’ warnings about slowing global growth as a hint that the apex US bank is considering fewer future US interest rate increases, which is supportive of EM bond inflows and currencies. At the close of local trade, the rand quoted 0.8 percent stronger at R14.03/$, after trading in the range of R14.01/$ – R14.25/$. The rand traded little changed this morning. Expected range today R13.90/$ – R14.20/$.
South African bourse
The JSE All Share (-0.1 percent) ended lower yesterday dragged by losses in large property (-1.3 percent) and consumer goods (-1.1 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.56 percent) traded higher. In local news, shares in Sibanye Gold (+7.9 percent) outshone the rest after the company CEO said it intends to resume cash dividend payments in 2020 after the company has settled its debt obligations.
Brent crude oil
The Brent oil price traded higher on Friday lifted by expectations of a 1.4 million bpd supply cut by Opec and its allies. At the close of local trade, the Brent oil price quoted 1.7 percent higher at $68.31/pb. Crude prices traded slightly weaker during Asian trade this morning.
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Source: iol.co.za