The rand strengthened somewhat against the US dollar on Wednesday, according to NKC Research.
The resilience comes as somewhat of a surprise given a slightly higher-than-expected US CPI print, increasing the likelihood of Fed tapering next month, while the rebound in South African retail sales in August disappointed.
This follows a mixed bag of South African industrial data on Tuesday. On the one hand, the manufacturing sector recorded a fairly solid bounce-back in August, while on the other hand, mining production fell by 2.4 percent m-o-m in August, which followed a monthly revised figure of 3.2 percent (4.1 percent previously) in July.
At the close of local trade, the rand quoted 0.77 percent stronger, at R14.80/$, after trading in range of R14.81/$ at R14.98/$. The rand strengthened overnight. The expected range of the rand against the dollar today is R14.70/$ to R15.00/$.
South African bourse
The JSE All Share (+0.04 percent) ended higher yesterday, technology (+0.97 percent) and industrials (+0.48 percent) posted gains, but resources (-0.26 percent) and financials (-0.67 percent) recorded losses. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.53 percent) traded higher.
Brent crude oil
Increased expectations that demand growth will slow on the back of persistent supply chain disruptions and rising inflation, saw the Brent oil price trade lower yesterday and at close of local trade, the Brent oil price quoted 0.79 percent weaker at $82.79/pb. But a larger-than-expected drawdown of US fuel stocks saw crude prices regain momentum and trade above $83pb during Asian trade this morning.
BUSINESS REPORT ONLINE