STOCKS AND MARKETS

RAND RISES, BOURSE DECLINES

THE RAND rose against the dollar yesterday, as the US currency weakened amid a cautious mood ahead of last night’s US Federal Reserve’s verdict on the health of the economy.

At 5.25pm the local currency was at R16.58 to the dollar, 0.3 percent firmer than its previous close and its strongest since March 18.

Investors were waiting to see if the US Fed would reinforce a more upbeat tone that has followed moves in the US and Europe to reopen economies.

The dollar weakened broadly amid speculation that the Fed would take measures to curb a recent steepening of the US yield curve.

“Any unexpected addition to the Fed’s stimulus programme and a more dovish than expected statement or a less-bearish-than-before outlook on economic recovery prospects would re-ignite the risk-on rally of late,” ETM Analytics said in a note.

The JSE continued its slide yesterday in line with global markets which remained cautious ahead of the Fed meeting.

Emerging markets (EM) were also lower on worries of a surge in coronavirus cases.

The JSE all share index retreated 1.49 percent to end the day at 53672.63 points, while the Top40 companies index slid 1.42 percent to close at 49204.82 points.

The market fall was mainly led by its banks, with the banking index down 3.63 percent at close of trading hours.

In fixed income, the yield on the government issue due in 2030 was up 2.5 basis points to 9.14 percent.

Meanwhile, EM currencies firmed as the dollar weakened amid a cautious mood ahead of the Fed meeting.

MSCI’s index of developing world currencies held near three-month highs. The Chinese yuan traded flat at 7.07 to the dollar.