Rand softer ahead of rate decision, stocks slide

  • 📰 ewnupdates
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 53%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The rand had managed to withstand the greenback’s recovery in the last two sessions and in early trade on Wednesday touched a session-best R13.9425, aided in part by a solid retail sales print boosting bets the economy would avoid a second consecutive quarterly contraction.

JOHANNESBURG - The rand edged lower on Wednesday in cautious trade ahead of an interest rate decision that is set to test the currency’s recent rally and its ability to draw yield-seeking investors.

South Africa’s central bank meets on Thursday. According to a Reuters poll last week, it is set to cut interest rates by 25 basis points, while forward rate markets on Wednesday showed investors pricing in a close to 40% probability of a cut by that margin. But as traders in New York came online later in the session the rand stalled, with dollar bulls emboldened by better-than-expected data on US jobs, inflation and retail sales in previous sessions.

The benchmark JSE Top-40 Index was down 0.76% at 51,565 points while the broader All-Share Index dropped 0.83% to 57,573 points.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 30. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rand finding resistance at R13.88/$ as market eyes US dataFocus on Tuesday is on US retail sales data amid market speculation about the scope and pace of US Federal Reserve interest rate cuts
Source: BDliveSA - 🏆 12. / 63 Read more »

Emerging-markets stocks fall on US-China trade tensionsThe rand slipped 0.2% ahead of the Reserve Bank’s rate decision
Source: BDliveSA - 🏆 12. / 63 Read more »

Rand, stocks boosted by global risk-on sentiment
Source: ewnupdates - 🏆 30. / 53 Read more »

MARKET WRAP: JSE closes higher, as rand loses earlier gainsThe rand ended its winning streak after better-than-expected US retail sales for June gave the dollar a little more breathing room
Source: BDliveSA - 🏆 12. / 63 Read more »