The rand was 0.46% weaker against the dollar at R18.54 at 12.10am on Wednesday with markets awaiting key US inflation data for direction into the possibility of the US central bank beginning rate cuts as soon as June.
Bianca Botes, a director at Citadel Global, noted that the rand made strides against major currencies yesterday and had already gained 1.8% against the greenback this week, bringing some relief to importers.
“We start the day at R18.45/$, R20.03/€ and R23.39/£,” she said.
Botes said higher-than-expected inflation could see a sharp jump in the value of the US dollar, as traders might eliminate any chance of a June rate cut and would re-evaluate the probability of rate cuts for the rest of the year.
The consumer price index reading would also set the tone for this evening’s Federal Open Market Committee minutes, where investors would be seeking clues from policymakers on the US interest rate trajectory, she added.
Meanwhile, the JSE All Share index was up for the third consecutive day on Wednesday, trading above the 76000 level- its highest since late December 2023.
Trading Economics said tech companies Naspers and Prosus, resource-linked stocks and industrials advanced the most, while financials went down.
Domestically, South Africa's mining and manufacturing data for February is set to be published on Thursday.
In corporate news, Sibanye-Stillwater CEO Neal Froneman raised the prospect of further restructuring of the firm’s platinum group metal (PGM) division in South Africa, Trading Economics said..
Markets were also eyeing the announcement that Fitch Ratings had revised China’s sovereign credit outlook from stable to negative while affirming its A+ rating on April 9th, amid mounting concerns regarding the nation's public finance outlook, particularly as it navigated uncertain economic terrain during a transition away from property-reliant growth towards what the government deems a more sustainable model.
BUSINESS REPORT