Rand trades on the back foot overnight
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The rand slipped somewhat weaker as the dollar retained strength following the nomination of Jerome Powell for a second term at the helm of the Fed, and bullish bets on policy normalisation, according to Oxford Economics Africa.
Investors pulled forward rate hike expectations after President Joe Biden nominated Fed Chair Powell for a second term. The first rate hike is priced in for June, with more than two full rate hikes priced in by November.
At close of local trade, the rand quoted 0.25 percent weaker, at R15.89/$, after trading in range of R15.79/$ to R15.93/$. The rand traded on the back foot overnight. The expected range of the rand against the dollar today is R15.80/$ to R16.10/$.
South African bourse
The JSE All Share (+0.21 percent) ended higher yesterday. Telecommunication (+2.35 percent) and resources (+1.64 percent) stocks posted gains, while technology (-2.35 percent) shares lost ground. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.49 percent) traded lower.
Brent crude oil
Major economies have teamed up to release millions of barrels of oil from their strategic reserves in an attempt to lower the Brent crude price. The impact this will have on prices are not evident yet. At the close of local trade, the Brent oil price quoted 2.95 percent higher, at $81.32/pb. Crude prices traded above $82pb during Asian trade this morning.
BUSINESS REPORT ONLINE