Rand claws back recent losses

 Rand claws back recent losses

Rand claws back recent losses.

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The rand recovered losses as the dollar rally stalled, with shuffling in the US Treasury market dictating a mood shift towards FX, according to NKC Research.

The post-Fed risk-off trade peaked during the morning session in Asia, continued to reverse in London and European trading.

The US Treasury curve underwent a massive flattening shift following last week’s more hawkish than expected FOMC decision as market participants scrambled to unwind reflation trades.

Yields surged in the belly of the curve as the timing of Fed rate hikes was pulled forward, but that also eased inflation fears, pushing bond yields lower and narrowing break-even spreads.

At the close of local trade, the rand quoted 0.87 percent stronger at R14.25/$, after trading in range of R14.22/$ to R14.40/$. The rand traded flat overnight.

The Brent oil price had a choppy start to the trading week but gained traction in the afternoon on the back of hopes that the northern hemisphere’s summer season will create an increase in fuel demand. At the close of trade, benchmark Brent crude futures quoted 0.76 percent higher at $74.23pb.

Chris Louw

https://sashares.co.za/

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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