Rands trades stronger due to flat dollar

JOHANNESBURG - The South African currency traded stronger yesterday thanks to a flat US dollar and some positive local data release according to NKC Research.

The greenback gave up early gains following a weaker-than-expected initial jobless claims report, and the rand was encouraged by lower PPI inflation figures for May and improved FDI and portfolio investment flows in Q1.

At the close of local trade, the rand quoted 0.69 percent stronger at R14.14/$, after trading in range of R14.13/$ - R14.27/$. The rand traded flat overnight. Expected range today R14.05/$ - R14.25/$.

The JSE All Share (-0.6 percent) ended in the red yesterday, dragged lower by losses in materials and real estate sector shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.7 percent) traded higher.

In local news, PPC (+1.0 percent) said its headline earnings per share for the year ended March 2019 increased by 33 percent to 20c. Grand Parade (+2.7 percent) announced that Mr Mohsin Tajbhai, an executive director on its board, has been appointed as the company’s Chief Executive.

The Brent oil price moved sideways yesterday as traders were cautious ahead of a meeting between the US and Chinese presidents at the G20 summit and next week’s Opec meeting.

At the close of local trade, benchmark Brent crude futures quoted 0.02 percent higher at $66.31pb. Crude prices traded slightly lower during Asian trade this morning.