The Star E-dition

RAND UP, GOLD EXTENDS GAINS

I Reuters

THE RAND strengthened against a weaker dollar yesterday after the US Federal Reserve (Fed) signalled that it would pause its interest rate hiking path.

The Fed on Wednesday night raised interest rates by a widely expected 25 basis points (bps), but dropped language about “ongoing increases” being needed in favour of “some additional” rises, as it watches how wobbling confidence in banks affects the economy.

At 5.46pm, the rand traded at R18.03 against the dollar, 1.52% stronger than its previous close.

The dollar index, which measures the currency against six rivals, fell more than 0.3% to 102.12.

“The world has been so dominated by dollar strength over many, many years... I think we may be in for a sustained period of relative dollar weakness”, said Wayne McCurrie, portfolio manager with FNB.

Headline inflation in South Africa rose slightly in February to 7% from 6.9% in January, data showed on Wednesday, fuelling bets that the South African Reserve Bank would hike interest rates by 25 bps at its meeting next week.

Stocks on the JSE closed slightly higher, with both the blue-chip Top40 and its broader all share index ending the day up more than 0.4%.

The government’s benchmark 2030 bond was stronger, with the yield down 4.5 bps to 9.95%.

Meanwhile, gold prices extended gains to a second consecutive session yesterday, boosted by a slide in the dollar and Treasury yields after the Fed signalled an end to its monetary tightening cycle might be on the cards.

Spot gold rose 0.7% to $1 982.89 (about R36 494) an ounce by 4.25pm while US gold futures gained 1.7% to $1 981.70 an ounce.

In other metals, spot silver rose 0.2% to $23.06 an ounce, platinum was up 1% to $987.65 an ounce, while palladium fell 0.9% to $1 437.64 an ounce.

BR

en-za

2023-03-24T07:00:00.0000000Z

2023-03-24T07:00:00.0000000Z

https://thestar.pressreader.com/article/282849375229882

African News Agency