The SARB’s MPC kept rates unchanged yesterday, and despite a benign inflation outlook, indicated that the easing cycle was over and that the next move would be a rate hike. Governor Lesetja Kganyago said that there would be no further moves this year and probably two hikes next year. The Rand weakened to 16.4000 levels after the MPC announcement before a stumbling Dollar saw the Rand firm to a 16.1534 close last night. The Rand is trading at 16.1890 this morning in very quiet Asian markets.
Gold has firmed 0.5% to $1 953 this morning while Platinum and Palladium are flat at $942 and $2 342 respectively. Oil has built on yesterday’s gains, firming a further 0.75% with WTI at $41.35 and Brent at $43.60 today.
A host of relatively poor US economic data out yesterday has seen the Dollar slip against most currencies and the DXY index fall to below the 93.00 again. The Dollar is trading at 1.1850 against the Euro and 1.2955 against the Pound while the Chinese Yuan has strengthened to 6.7550. Wall Street closed weaker yesterday with Tech stocks once again being the hardest hit. The markets were, however not as weak as what the opening levels were. US futures are marginally down this morning but Asain stocks are all up on the day. The JSE All-share was not spared yesterday’s sell-off in equities, losing 1.55% to close at 55,036.