RAND RALLY DISRUPTED, JSE UP

THE RAND dropped to a 12-day low and one of its primary volatility indicators climbed to a near one month-high yesterday, as the currency’s 2021 rally ran into some turbulence.

The rand was down 0.7 percent at R13.77 to the dollar in midday trade and firmly on course for its fifth drop in the last six trading sessions.

By 5pm, the rand had firmed slightly, trading at R13.71 to the dollar.

On the JSE, stocks were firmer, with the benchmark all share index rising 0.32 percent at 67 941.48 points, while the blue-chip Top40 index advanced 0.34 percent to 61 653.75 points.

Meanwhile, the S&P 500 and the Dow Jones industrial average indices eased yesterday, a session after the S&P 500 hit a record closing high, as investors awaited cues from the Federal Reserve’s meeting this week on the central bank’s outlook on inflation and the future of bond purchases.

The technology-heavy Nasdaq rose for the sixth time in the past seven sessions, lifted by gains in shares of Tesla, Apple and Amazon.com.

Recent data has indicated that the US economy is regaining momentum but not overheating, taming worries about inflation and sending the S&P 500 to a record high.

While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at this week’s meeting. Most analysts, however, don’t expect a decision before the central bank’s annual conference in August.

Any shift in the Fed’s dovish rhetoric could upend equity markets. The benchmark is up 13 percent this year while the Dow and the Nasdaq have risen 12.6 percent and 9.2 percent, respectively.

Healthcare and financials were the biggest drag on the S&P 500 yesterday, while technology and consumer discretionary provided the biggest boost.