The rand regained some ground against the greenback, but is still trading within a tight range.
It starts the day at R19.09 to the dollar, R20.44 to the euro and R23.78 to the pound.
By 9.51am it was 0.31% weaker to the dollar at R19.13.
Bianca Botes, a director at Citadel Global, said on Wednesday that the dollar retreated from its five-month high during trade yesterday, as softer than expected US Purchasing Managers' Index data brought some relief to other currencies. However, markets remain on edge ahead of the release of US gross domestic product (GDP) and Personal Consumption Expenditures (PCE) data later this week.
Meanwhile, officials in Japan had warned that the continued weakness of the yen, against the greenback, could see intervention to support the battered unit.
“It’s a quiet day on the data calendar, with US Durable Goods Orders due for release this afternoon, said Botes.
Trading Economics said the dollar index held around 105.6 on Wednesday after losing 0.4% in the previous session, weighed down by cooling US private sector growth which supports the case for Federal Reserve interest rate cuts.
Data showed that US business growth slowed and signalled only a slight expansion in April as both manufacturing and services activities eased. The greenback also came under pressure from a rebound in the euro and sterling amid robust Eurozone and British business activity data.
“Moreover, the US dollar weakened against the Aussie as stronger-than-expected Australian inflation data bolstered expectations that the Reserve Bank of Australia will not cut rates soon. Investors now look ahead to US GDP data on Thursday and the Fed-preferred PCE price index report on Friday to better guide the monetary policy outlook,” it said.
JSE
The JSE index was slightly up around 74 500 points on Wednesday, extending gains for the fifth straight session, mirroring its global peers, according to Trading Economics. Traders remained focused on corporate earnings, particularly from tech companies, while awaiting key economic data from the US later in the week.
Among single stocks, the top performer was Quilter, up 5.5% on the back of strong results, followed by Naspers, Thungela Resources, Glencore, Anglo American and Kumba Iron Ore, with gains of nearly 3% each. By contrast, Montauk Renewables and Sasol posted the biggest losses, down 3% and 1.9%, respectively.
Gold
Gold fell under $2 320 (R44 409) per ounce on Wednesday, pressured by reduced safe-haven demand as investors turned towards riskier assets following the easing tensions in the Middle East, according to Trading Economics.
Crude oil
Brent crude futures held above $88 per barrel on Wednesday after gaining 1.6% in the previous session, underpinned by industry data showing a surprise drop in US crude stockpiles last week, signalling robust demand. Data from the American Petroleum Institute showed that US crude inventories declined by 3.23 million barrels last week, reversing from a 4.09 million barrel increase in the preceding week and defying market expectations for a 1.8 million barrel build, according to Trading Economics.
BUSINESS REPORT