Africa-Press – South-Africa. JOHANNESBURG – The rand was supported by US stimulus optimism while better than expected fiscal revenue performance ahead of the February budget speech boosted sentiment according to NKC Research.
It is expected that a favourable external backdrop, shaped by a policy-led correction in the dollar, will support the risk-sensitive rand. Democrats are moving fast to prepare the ground for a stimulus bill they can pass with just 50 votes in the Senate via budget reconciliation; while President Biden has welcomed input from Senate Republicans, Congressional Democrats are ready to move alone in order to pass a larger package. The resolution adopted by the Senate along party lines last week is likely to pass the House swiftly, which will clear the way for committees to start drafting legislation providing stimulus up to a maximum of $1.9trn.
At the close of local trade, the rand quoted 0.19 percent stronger at R14.92/$, after trading in range of R14.83/$ – R15.01/$. The rand was stronger overnight. The expected range of the rand against the today is R14.65/$ – R14.95/$.
Brent crude oil
The Brent oil price extended gains on Monday as supply cuts pushed the oil price above the psychological $60 level. At the close of local trade, benchmark Brent crude futures quoted 1.25 percent higher at $60.08pb. Crude prices continued to grind higher during Asian trade this morning.
BUSINESS REPORT ONLINE
