The rand oscillated as Automobile Association warned on aggressive fuel price adjustments at end-October, according to Oxford Economics Africa.
Despite the long-end improvement last week in response to the flattening flows related to rising expectations for the US Federal Reserve’s rate hikes, treasuries have been under broader pressure since the September FOMC and Bank of England MPC decisions helped yields burst out of the narrow ranges that had been holding since July.
At the close of local trade, the rand ended 0.45 percent stronger at R14.53 a dollar, after trading in the range of R14.53 to R14.69. The rand extended its gains overnight. The expected range of the rand against the dollar today is R14.40-R14.70.
South African bourse
The JSE All Share ended marginally lower (0.02 percent) lower yesterday, as gains in Technology (t2.99 percent) and Industrials (0.49 percent) were countered by losses in telecoms (1.68 percent) as well as resources (0.53 percent). In the overall emerging market sphere, the MSCI Emerging Market Index traded 0.9 percent higher.
Brent crude oil
The Brent oil price experienced a volatile session yesterday, with the price still close to a multi-year high edging lower in the afternoon session after making gains in the early morning.
Prices continue to face upward pressure from the global energy supply crisis, with lower winter temperatures in the northern hemisphere increasing demand for fuels such as oil, gas, and coal.
Meanwhile, prices face downward pressure from a slowing Chinese economy with its power crisis impacting economic activity. Increased production from the US will also help keep a lid on price rises. At the close of local trade, the Brent oil price dropped by 0.1 percent to $85.57 per barrel. Crude prices traded continued their losses during Asian trade this morning.