Rand firmed on softer dollar, 50bps fee hike

Market commentary from Andre Cilliers, Currency Strategist at TreasuryONE:

Rand update

The SARB elevating the repo fee by 50bps and a softer dollar saw the rand firm by 1.2% to end at 15.85 on the day. The rand touched an intraday most attention-grabbing level of 15.77 after the MPC decision before we saw importers buy just appropriate thing concerning the stronger rand. The native forex is at tell at 15.82 and desires a sustained wreck of 15.75 to start straightforward options to a switch to the 15.50 target.

Commodity update

The softer dollar and improved risk sentiment saw commodities firm, with Gold and Platinum end stronger while Palladium became once marginally softer. Contemptible metals like Copper and Nickel also showed sturdy gains on the day. This morning now we have got Gold and Platinum procuring and selling flat at $1,844 and $960, while Palladium is up around 0.8% at $2,024. The worth of Brent remains rather elevated as hopes of increased demand on account of China’s easing of Covid restrictions underpinned the tag. Brent closed 3.5% bigger at $112.00 and is conserving on to the gains this morning.

World update

The dollar DXY index retreated to under 103.00 as US bond yields firmed and we saw sturdy bounces in the euro, pound, and the Yen. The DXY is at tell at 102.94 with the dollar sitting at 1.0585 against the euro, at 1.2470 against the pound, and at 127.80 against the Yen. The 30y US bond yield is at 3.05%, the 10y yield is at 2.85%, and the 2y yield at 2.63%. Wall Side motorway closed weaker the day gone by, but their US futures have opened firmer this morning. Asian equity markets are all procuring and selling sharply bigger this morning after the Chinese central monetary institution in the discount of the predominant 5-twelve months mortgage high fee by a file 0.15%.  

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