[ad_1]
The rand traded at $ 15.25 against the dollar at 16:30 GMT, about 1.2% higher than at the previous close, after higher than expected retail sales figures in the United States. United.
Picture: EWN.
JOHANNESBURG – The rand rose more than 1% against the dollar on Thursday, which helped avoid a strong sell, as worries about the global economy eased slightly.
The rand had a torrid run this month, losing about 6% against the US dollar because of the gloomy prospects for domestic growth and worried that the United States would fall into recession due to its trade war with the US. China.
The rand traded at $ 15.25 against the dollar at 16:30 GMT, about 1.2% higher than at the previous close, after higher than expected retail sales figures in the United States. United.
Some international investors use the South African currency as an indirect indicator of emerging market risk, which makes it extremely sensitive to fluctuations in confidence in global markets.
Some traders have stated that the recovery of the rand is likely to be short-lived, given the serious concerns over the country's debt trajectory and the slow pace of economic reforms.
A senior official of the International Monetary Fund said Thursday that South Africa's public debt is reaching "uncomfortable" levels.
On the Johannesburg Stock Exchange, shares recovered some of the ground lost earlier in the day, but remained weaker, as investors did not want to risk losing a day after the reversal of the bond yield curve. US Treasury, sign that some investors see it as a sign of recession in the world. bigger economy.
The All-Share index of the Johannesburg Stock Exchange lost 53541 points against 0.35%, and the benchmark, the Top-40, lost 0.33% to 48,117 points.
Gold Fields bullion producer led the decline in the blue chip index, dropping 9.76% to 80.98 rand after reporting lower half year earnings.
Anglo American Platinum and Anglo American minor fell by 3.79% to 812.12 and 3.49% to 313.18, respectively. The South African paper and pulp maker Sappi lost 2.56 percent to 42.68 rand.
The banking index rose 3.55% to 8,340 points. The insurer Discovery closed up 5.26% to 105.91 rand, while Standard Bank rose 4.58% to 173.50 rand and Absa from 4.03% to 152 , 07 rand.
"Stocks are trading at unprecedented levels, from a valuation perspective, 10 years ago," said Wayne McCurrie, portfolio manager at FNB Wealth and Investments. "They are cheaper than they were struggling with the financial crisis."
[ad_2]
Source link
