Africa-Press – South-Africa. JOHANNESBURG – The rand retreated as the greenback advanced during the European session, supported by Treasury yields according to NKC Research.
With external factors remaining the key drivers of rand movements, it is expected that the FOMC will reaffirm its extremely dovish stance, despite large upward revisions to its GDP growth and inflation forecasts for this year.
Chairman Powell will re-emphasize that the labour market is far from fully recovered, the rise in inflation is not likely to be “large or persistent,” and overall inflation expectations remain well-anchored around 2 percent.
On local soil, Eskom announced that a loss in generation capacity meant that it would extend loadshedding to Wednesday in order to replenish emergency generation reserves.
At the close of local trade, the rand quoted 0.41 percent weaker at R14.95/$, after trading in range of R14.82/$ – R15.04/$. The rand traded in a narrow band during this morning’s Asian trading session. The expected range of the rand against the dollar today is R14.80/$ – R15.20/$.
Brent crude oil
The Brent oil price traded in a tight range at the end of last week, supported by Opec-led supply cuts and optimism about a strong global economic recovery in H2. At the close of local trade, benchmark Brent crude futures quoted 0.01 percent lower at $69.39pb. Crude prices traded firmer during Asian trade this morning.
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