RAND AND STOCKS RETREAT
THE RAND weakened yesterday as a dollar rally dimmed investor appetite for riskier assets with investors taking profits ahead of the US Federal Reserve meeting last night.
At 5pm, the rand bid at R14.0205 to the dollar, 4 cents softer than at the same time on Wednesday, having closed at R13.9175 on Wednesday.
The Federal Open Market Committee was last night expected to maintain the hawkish language seen in recent policy statements, while keeping interest rates unchanged this time. The Fed has raised rates three times this year and inflation started to pick up, and it has signalled a rate rise in December.
South Africa’s total mining output fell 1.8 percent year-on-year in September compared with the consensus figure which forecast it rising 0.3 percent.
In fixed income, the yield on the benchmark government bond due in 2026 rose 1 basis points to 9.155 percent.
Bourse heavyweight Naspers and banks led stocks lower. The all share index lost 1.16 percent to 54 064.82 points while the Top40 index fell 1.36 percent to 47 638 points. I Reuters