The rand rose in tandem with most emerging market currencies, cheering the slowdown in US inflation as fears surrounding a taper announcement eased, according to NKC Research.
The local currency broke out of a five-day losing streak as the softer-than-expected US CPI print bolstered the risk-sensitive rand. Looking at the main conclusions of the July CPI report, is showed a moderation in the monthly gain in consumer inflation.
At the close of local trade, the rand strengthened by 0.84 percent ending at R14.69/$, after trading in range of R14.62/$ - R14.90/$. The rand traded firmer overnight. The expected range of the rand against the dollar today is R14.50/$ - R14.80/$.
South African bourse
The market reacted to news of the US Senate passing a trillion-dollar infrastructure bill, while moderation in US July inflation boosted investor sentiment. Despite these positive developments, concerns remain over the Delta variant impact on the global economic recovery. In local news, the JSE All Share (+0.02 percent) ended higher yesterday and Steinhoff shares rose (+23.2 percent) following the company’s announcement that it has increased its global settlement offer by an additional R3.2bn to around R25bn. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.21 percent) traded lower.
Brent crude oil
The Brent oil price traded lower yesterday, following pressure from the White House on Opec+ and its allies to increase output to offset rising prices. The Biden administration noted that higher oil prices is a threat to the global economic recovery. At the close of local trade, benchmark Brent crude futures quoted 0.62 percent lower at $70.2pb. Crude prices regained some losses during Asian trade this morning.
BUSINESS REPORT ONLINE