The JSE was slightly weaker on Friday mid-morning while the rand was firmer, with trading expected to be thin as US markets reopened after the Thanksgiving holiday to a shortened trading session.
On Friday morning, 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 11.22am, the rand had strengthened 0.25% to R18.0545/$, while it was little changed at R19.0723/€ and R22.9432/£. The euro was 0.19% firmer at $1.0573.
In the long-term, Cilliers said fiscal discipline, SOE improvements and alignment with IMF recommendations (for example, debt ceilings) remained essential for sustained rand strength.
“However, global risks remain, including Trump’s trade policies, and eurozone instability, which pose downside risks to emerging-markets currencies and global markets,” said Cilliers.
At 11.25am, the JSE all share lost 0.19% to 84,622.18 points, with major indices mixed, while the top 40 was down 0.17%.
At the same time in Europe, markets were little changed.
Earlier in Asia, the Shanghai Composite gained 0.93% and Hong Kong’s Hang Seng 0.25%, while Japan’s Nikkei lost 0.37%.
In the commodities markets, gold gained 0.99% to $2,663.76/oz and platinum 1.63% to $944.44/oz. Brent crude was 0.72% weaker at $72.12 a barrel.
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