The JSE closed weaker amid mixed global peers on Friday while the rand was firmer, with trading expected to be thin as US markets reopened after Thanksgiving to a shortened trading session.
The rand reached an intraday best level of R18.0088 to the dollar.
“The rand’s resilience is due to domestic fiscal improvements and global risk sentiment, especially as markets digest president-elect Donald Trump’s trade policies,” TreasuryOne currency strategist Andre Cilliers said.
At 6pm, the rand had strengthened 0.36% to R18.0495/$, 0.28% to R19.0244/€ and 0.25% to R22.8813/£. The euro was little changed at $1.0552.
Over the long-term, Cilliers said fiscal discipline, SOE improvements and alignment with IMF recommendations (for example, debt ceilings) remained essential for sustained rand strength.
For the month, the rand lost 2.5% to the dollar, cutting its gain for the year-to-date to 1.3%.
“Global risks remain, including Trump’s trade policies, and eurozone instability, which pose downside risks to emerging-markets currencies and global markets,” said Cilliers.
With no major economic data releases or corporate earnings reports scheduled for Friday in the US, trading activity is expected to be subdued. Investors, however, remain vigilant, seeking any indication of the Federal Reserve’s next move.
According to Lukman Otunuga, senior research analyst at FXTM, “Investors are closely watching for signs of a stable economy, while also looking for clues that could influence the Fed’s upcoming decisions on interest rates."
The JSE all share lost 0.33% to 84,510 points and the top 40 0.38%. Industrial metals added 1.91%, retailers 0.56%, resources 0.29% and SA listed property 0.11%. Food producers lost 1.11%, banks 1.1%, financials 0.76%, precious metals 0.5% and industrials 0.32%.
For the week, the all share was down 1.02%, dragged lower by precious metals and resources, down 11.15% and 6.75%, respectively.
At 5.50pm, the Dow Jones industrial average was 0.43% firmer at 44,919 points. In Europe, the FSTE 100 was flat, while France’s CAC 40 added 0.73% and Germany’s DAX 30 1.01%.
In commodities markets, gold gained 0.88% to $2,661.95/oz and platinum 2.43% to $952/oz. Brent crude was 0.22% firmer at $72.83 a barrel.
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