12 October 2020
The South African currency benefited from renewed hopes for US fiscal stimulus after a tweet by US president Trump suggested that the presidency halted talks with the Democrats on a rescue package according to NKC Research.
On local soil, the attention this month will be on the medium-term budget statement (‘mini budget’) which will hopefully shed some light on the fate of struggling parastatals, including national carrier SAA, which was recently placed in care & maintenance. On Thursday, the World Bank indicated that it now expects SSA to contract by 3.3 percent this year before returning to positive growth territory at 2.1 percent in 2021. The multilateral organisation warned that the pandemic “has taken a large toll on economic activity in sub-Saharan Africa, putting a decade of hard-won economic progress at risk.”
At the close of local trade, the rand quoted 0.04 percent stronger at R16.59/$, after trading in range of R16.56/$ – R16.67/$. The local unit flexed its muscles in this morning’s Asian session as it built on yesterday’s slight gain. Expected range today R16.45/$ – R16.65/$.
Source: Independent Online