The rand softened in delayed reaction to US monetary policy normalisation concerns as domestic markets were closed for a public holiday on Monday, according to NKC Research.
The latest jobs report confirmed that the labour market recovery remained on a healthy track in July. On balance, the US economy passed a key milestone in Q2 as it has now more than recouped output lost during the Covid-induced recession.
At the close of local trade, the rand quoted 0.5 percent weaker at R14.81/$, after trading in range of R14.73/$ - R14.85/$. The rand traded flat overnight. The expected range of the rand against the dollar today is R14.70/$ - R15.00/$.
South African bourse
The JSE All Share (+1.35 percent) ended higher yesterday, as investors anticipated a decision by the US Senate on a significant infrastructure package. The biggest winners were technology (+10.4 percent) and industrials (+3.2 percent) offsetting losses in telecommunication (-0.6 percent) and financials (-0.2 percent). Tech stocks including Naspers (+10.8 percent) and Prosus (+10.3 percent) ended the day in the black. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.5 percent) traded firmer.
Brent crude oil
The Brent oil price traded higher yesterday, as demand in the US and eurozone overshadowed global concerns over the rise of Covid-19 infections in Asia and its impact. At the close of local trade, benchmark Brent crude futures quoted 1.5 percent higher at $70.8pb. Crude prices lost some of its gains during Asian trade this morning.
BUSINESS REPORT ONLINE